Arizona has 2 Individual Tax Credits for Private School Tuition Assistance- You may combine them to maximize your tax credit.
2021 Maximum Credits: Single $1219 . Married $2435
2020 Maximum Credits: Single $1183 . Married $2365
l) Original Individual scholarship tax credit
Individuals may receive a tax credit of up to $593 and married couples may receive a credit of up to $1186 for donations to school tuition organizations (“STOs”). The STOs award scholarships to students whose parents have chosen to send them to a private school. Last year, this program provided over 25,000 scholarships to Arizona children.
2) Switcher AKA Overflow/PLUS (Private Learning Uplifting Students) credit
This additional tax credit program was enacted in 2012. The switcher or overflow/PLUS credit allows individuals to receive credit for up to an additional $590 donation to a school tuition organization – combined with the original individual scholarship tax credit for a maximum total credit of $1179 for donations to an STO. Married couples filing jointly can take a credit for up to an additional $1186 donation – for a total credit of $2365.
Helpful Payroll Forms
Your HR department or Payroll processing company will need these forms completed in order to enact your request to have your AZ tax liability redirected to America's Scholarship Konnection for a dollar for dollar tax credit.
More families can be helped, that need scholarships to enable them to have Educational Choice.
Arizona Revised Statutes §43-401 (G) provides that an employee may request that his or her employer reduce his or her withholding in an amount equal to income tax credit(s) the employee will qualify for when filing his or her income tax return.