FAQs for Individual Donors
If you have an Arizona tax liability – this is an Arizona State tax credit.
If you don’t have an Arizona State tax liability, your donation might be a tax deduction off your federal taxes. Arizona Tuition Connection is a 501(c)3 nonprofit organization. Please consult with your tax advisor regarding federal deductions.
The state tax credit law allows donors to recommend a student or school for a tuition scholarship. The recommendation of the donor is our top criteria when awarding scholarships, but the law does require us to take other criteria into account.
State law requires that certain amounts from each donation be used for different types of scholarships. It is important to understand that not every student is eligible to receive every type of scholarship available.
Please contact us if you have any questions on this.
- For the 2023 tax year, the maximums are:
$2,609 married filing jointly, and
$1,307 filing single.
Your tax liability is not what you owe when you file your taxes but is the total amount you would owe if you had not paid any taxes all year long. The best way to determine your tax liability is to talk to your tax advisor. If you don’t have a tax advisor, it is common for people to look at what their tax liability was in previous years. Your tax liability can be found on line 48 of your AZ 140 form. If your income is the same as the previous year, this might give you an indication of what your liability is this year.
*By using the link above, be please advised that the linked site has been created, published, and maintained by parties independent of this organization. We do not assume responsibility for the accuracy of the information contained therein.
Absolutely! Arizona offers several tax credits (Public School, Veterans, Qualified Charitable Organizations, Qualified Foster Care Organizations) in addition to the Private School tax credit. You can donate to them all, up to your tax liability. So, go ahead and support the causes you love. If you like, you can go to AZTAXCREDITFUNDS.COM to make all of your tax credit donations.
For the 2023 Arizona tax credit, donations can be accepted through April 15th, 2024.
Even if you are filing an extension, your donation must be received by the date above.
The information you need to claim the credit will be provided to you on your receipt once you complete your donation.
Depending on how much you donate, your donation may be split into two parts on your receipt.
- Credit for Contributions to Private School Tuition Organizations (Original Individual Income Tax Credit) This tax credit is claimed on Form 323.
For tax year 2023, the maximum credit allowed is $655 for single, and $1,308 for married filing joint.
- Credit for Contributions to Certified School Tuition Organizations (Switcher Individual Income Tax Credit) This tax credit is claimed on Form 348 and is available to taxpayers who donate more than the maximum amounts that can be taken on Form 323. For tax year 2023, the maximum credit allowed is $652 for single, and $1,301 for married filing joint.
These two forms are then summarized on Form 301. All forms are available from the Arizona Department of Revenue (ADOR) at www.azdor.gov, or from your accountant or tax software.
Not all students are eligible to receive Switcher tax credit scholarships. If you have questions about if a child is eligible for Switcher scholarships, please contact the families prior to making your donation.
We have created a tips and tricks guide for TurboTax that will help you through the process of claiming your private school tax credit donation.
No, the law states you cannot donate to your own household.
No. The law states, “A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.”
Yes, state law requires that we collect a minimum amount of information with each donation.
The rules for what can and can’t be matched are established by your employer, but it is rare to see an employer not consider this a qualified donation.
For you to take it as a tax credit it is important that you do the initial donation correctly. According to Arizona state law, the original donation must be made directly to Arizona Tuition Connection or through an employer withholding, with the employer paying the withholdings directly to us.
You cannot make your original donation through United Way, Benevity, or a similar “umbrella” organization and take it as a tax credit. While we can certainly accept such donations, the donors are not entitled to take the private school tuition organization credit. The law states that the donor must make the contribution directly to a school tuition organization.
What you must do is make your donation directly to Arizona Tuition Connection, or through payroll deduction, then take the receipt we provide to the third party or your employer for matching. By doing it this way, you can take the credit and have your employer match.
Typically, your employer will send us some paperwork to complete and return. These matching funds can sometimes take a while to be sent. It is not uncommon for employers to cut matching checks quarterly or even semi-annually.
Not sure if your company offers a matching program? We can help! CLICK HERE to type in your employer’s name and see if they are listed.
This is an Arizona tax credit program. To be able to take the donation as a dollar-for-dollar tax credit the donor must have an Arizona tax liability and be filing an Arizona tax return. People with no income in Arizona don’t file Arizona taxes and therefore don’t have any liability to take the credit against.
With that said, Arizona Tuition Connection is a 501(c)3 nonprofit organization. If people out of state would like to support your family, they can make a donation. Instead of being a dollar-for-dollar tax credit, these out-of-state donations may be eligible to be taken as a federal tax deduction. Donors claim it on their federal tax forms just like they do every other charitable donation they make. Please keep in mind tax laws have recently changed. We would strongly encourage discussing all such donations with a tax professional prior to donating.
Non-tax credit donations are not limited to the maximums set by the state for tax credit.