We have provided some useful information links for you below on School Tuition Organization Tax Credits. These credits can benefit anyone who pays Arizona State Income Tax.
A Taxpayer may claim a credit for making a donation to a School Tuition Organization for scholarships to Private schools. The maximum credit which may be taken by Married Filing Joint filers is $1,056, ($528 for Single, Head of Household, or Married Filing Separate taxpayers). For 2015 this credit increases to $1,070 for MFJ taxpayers, ($535 for Single, HOH, and MFS taxpayers).
If a taxpayer would like to offset more Arizona Income Tax, there is an additional credit available, the Credit for Contributions to Certified School Tuition Organizations. Taxpayers must have contributed the maximum amount to the School Tuition Organizations (explained in the earlier paragraph) before they can take advantage of this credit. The maximum credit which can be taken is $1,050 for MFJ filers, and $525 for Single, HOH and MFS taxpayers.
By combining these two credits, MFJ taxpayers can save up to $2,106 on their 2014 AZ Tax liability. Single, HOH and MFS taxpayers can save up to $1,053.
Another unique aspect of these two tax credits is the ability to make contributions up to April 15, 2015 and CHOOSE to apply the credit to your 2014 tax liability. There is no other contribution that qualifies for the AZ Tax Credit that allows you to contribute after December 31st and apply it to the previous year's tax liability. Contributions made between January 1, 2015 and April 15, 2015 may be used as a tax credit on either your 2014 OR your 2015 AZ Tax return.
To find out what School Tuition Organizations are certified to receive donations for the tax credit Click here
To learn more about this credit and School Tax Credits from Part 1 Click here
As stated on the Arizona Department of Revenue Service website There are situations where a contribution to a school
tuition organization, as defined in statute, would not
qualify for the tax credits:
Your donation to the school tuition organization
will not qualify for the credits if you designate the
donation for the direct benefit of your dependent.
Additionally, your donation will also not qualify if you
designate a student beneficiary as a condition of your
contribution to the school tuition organization.
The tax credits are not allowed if you agree
with another person to designate each other's
contribution to the school tuition organization for the
direct benefit of each other's dependent, a practice
commonly known as swapping.
We hope you have found this information useful and as always if you have questions please do not hesitate to give our office a call!
