About School Tax Credits
There are three Arizona tax credits that allow individual taxpayers, corporate taxpayers and insurance companies to make a donation, receive a dollar for dollar tax credit and help educate tomorrow’s leaders.
Private School Tax
Credit
The Arizona legislature enacted a law in 1997 (effective 1998 tax year) allowing individual taxpayers an Arizona income tax credit up to $500 (single and head of household) or $1,000 (married filing joint) for donations to a private school tuition organization, such as the Brophy Community Foundation. At least 90% of the donations to the Brophy Community Foundation must be given to students for tuition aid. A student must apply directly to the Brophy Community Foundation for tuition aid. All awards are need based.
Corporate Tax Credit
In 2006, the Arizona legislature passed a corporate tax credit that allows “C” Corporations and “S” Corporations (only S-corps that file income tax on a 120 Corporate Income Tax Return) to make donations to a school tuition organization, such as the Brophy Community Foundation, and receive a dollar for dollar tax credit. There is no contribution cap per corporation, but there is a statewide cap of $20.736 for FY 2010-1011.
In 2009, the corporate tax credit was expanded to include insurance companies that pay a premium tax.
Public School Tax
Credit
Individual taxpayers may also receive a tax credit up to $200 (single and head of household) or $400 (married filing joint) for donations to public schools. Donations to public schools are used for extracurricular activities. This means any school sponsored activity that requires enrolled students to pay a fee in order to participate. The Brophy Community Foundation recommends donating to the Wilson School District, 3025 E. Fillmore Street, Phoenix, Arizona 85008. Send your donation payable to and directly to the Wilson School District.
An individual taxpayer may take advantage of both the private school and public school tax credit in any given tax year. Therefore, a single taxpayer could receive $700 in TAX CREDITS annually and benefit education! Couples filing joint returns could receive $1,400 in TAX CREDITS.
For more information,
call the Arizona Department of Revenue:
Phoenix 602-255-3381 *
Nationwide, toll-free 800-352-4090
Or visit relevant
Arizona Department of Revenue websites:
Arizona Department
of Revenue
Arizona Department
of Revenue Tax Credit Brochure
School Tax Credits Brochure
Arizona Revised
Statutes
Tax credit for contributions to private schools (A.R.S.
43-1089)
Tax credit for contributions to public schools (A.R.S.
43-1089.01)
Corporate
tax credits for contributions to private (A.R.S.
43-1183)
Premium tax credit for contributions to school tuition organization; low income scholarships (A.R.S. 20-224.06)
Arizona Tax Forms
The 2010 tax forms are now available, click the links below to download the PDFs. To receive previous year's tax forms click
here and scroll down to the 301 & 323 forms.
301 Individual Tax Credits
301 Instructions
323 Credit for Contributions to Private School Tuition Organizations
323 Instructions
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