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 What is the
mission of the ASCT?
 The Arizona
School Choice Trust (ASCT) was founded for the sole purpose to provide hope and
opportunity to low-income families by awarding tuition scholarships for their
children to attend private elementary and secondary schools (K-12). We
believe that a solid primary education is the key to giving children in
families that demonstrate financial need, the opportunity to succeed in life
and achieve their dreams.
How much money
is actually used for scholarships?
At least 90
cents of every tuition tax-credit dollar we receive does directly toward
scholarships.
Do I need to
itemize to receive a credit?
No, you don't
need to itemize.
Is this credit
in addition to the credit I can get for contributing to a public school?
Yes! You can
do both.
How many ways
can I contribute to the ASCT?
In a variety
of ways! One is an individual tax credit that allows individuals to get a
dollar for dollar deduction of up to $500 if filing individually and up to
$1,000 if filing jointly.
If you own a business in Arizona that is a C Corp, you can contribute literally
millions of dollars and receive a dollar for dollar tax credit.
We also accept:
-
Payroll deductions
-
Matching gifts
-
Corporate, foundation & individual gifts
-
Stock gifts
-
Legacies & bequests
-
In-kind contributions (i.e. property, printing, postage, equipment, loaned
executives and professional services)
-
Combined Municipal Campaign contributions
Can I
designate a gift for an individual for a participating school?
Yes, gifts can
be restricted to an individual or private school.
What school
tax credits are available to individuals?*
An individual
may claim a credit for making contributions or paying fees to a public school
for support of extra curricular activities or character education programs. An
individual may also claim a credit for making a donation to a qualified school
tuition organization for scholarships to private schools.
Who may claim
the individual school tax credits?*
The individual
school tax credits are available only to individuals. Partnerships and S
corporations cannot pass these credits through to their partners or
shareholders. These credits are also not available to trusts, estates, regular
corporations, or S corporations.
What form does
an individual use to claim these credits?*
An individual
that makes a contribution to a qualifying school tuition organization would use
Arizona Form 323 to claim this credit.
Can a taxpayer
receive a refund of these credits?*
No. The
credits may only be used to the extent they reduce a tax liability to zero. Any
unused amounts may be carried forward for not more than five consecutive
taxable years.
Can a taxpayer
claim both credits in the same taxable year?*
Yes. An
individual may claim a credit for making contributions or paying fees to public
school for support of extra curricular activities, character education programs
and to a qualified school tuition organization for scholarship
On the Arizona
state income tax return, can a taxpayer claim both an itemized deduction and a
tax credit for a contribution made to either a public school or a school
tuition organization?*
No. Any amount
claimed as a tax credit cannot be taken as an itemized deduction. However, you
may still claim any excess over the amount claimed as a credit as an itemized
deduction as long as the contribution did not benefit your dependent.
Must a
taxpayer have a child in school in order to claim one or both of these
credits?*
No.
What is an
enrolled student?*
An enrolled
student is a student included by the school in its average daily membership
count (ADM). Preschool students, except handicapped students, and adult
education students should not be included.
What do I have
to do to qualify for a Private School Tuition Credit?*
To qualify for
this credit, you must make cash contributions to a tuition organization that
provides scholarships or grants to qualified schools.
What is the
maximum dollar amount of the credit?*
The credit is
equal to the amount contributed. However, for single taxpayers or heads of
household, the credit cannot exceed $500. For married taxpayers that file a
joint return, the credit cannot exceed $1,000. If married taxpayers file
separate returns, each spouse may claim only 1/2 of the credit that would have
been allowed on the joint return.
What is a
school tuition organization?*
A school
tuition organization is one that is tax exempt under Section 501(c)(3) of the
Internal Revenue Code, allocates at least 90 percent of its annual revenue to
scholarships or grants, and makes its scholarships/grants available to students
of more than one qualified school.
Will the
Department of Revenue certify school tuition organizations?*
No. There is
no requirement that the department certify a school tuition organization.
However, the taxpayer should ask questions of the organization to determine if
the organization (1) is tax exempt under Section 501(c)(3) of the Internal
Revenue Code; (2) allocates 90 percent of its annual revenues to scholarships;
and (3) makes scholarships available to students of more than one school.
What is a
qualified school?*
A qualified
school is a non-governmental preschool for handicapped students, or a
non-governmental primary or secondary school located in Arizona. The school
cannot discriminate on the basis of race, color, handicap, familial status, or
national origin. The primary school begins with kindergarten, and the secondary
school ends with grade 12.
Are there
situations where a contribution to a school tuition organization, as defined in
statute, would not qualify for the tax credit?*
The law lists
only one situation that does not qualify for the tax credit. The credit will
not be allowed if the taxpayer designates a donation to the school tuition
organization for the direct benefit of a dependent of the taxpayer.
Can a school
tuition organization send a block grant of money to a school for later
distribution to students as decided by the school and include that block grant
in their annual revenue allocation formula?
No. A student
must apply directly to the tuition organization, and the tuition organization
must decide whether or not to award the scholarship to the student.
Can a school
tuition organization send a check directly to a qualifying school to pay for
the tuition of a student?
Yes, as long
as the student has applied for and been approved for a scholarship. The check
should be forwarded with the stipulation that funds are to be used only for a
specific student.
A school
tuition organization cannot limit availability to only students of one school.
Does that mean that the organization must actually make grants to more than one
school?
No. A school
tuition organization should have a list of qualifying schools for which they
would grant scholarships. They do not have to actually allocate funds to more
than one school in any given year, but they must be willing to make grants to
more than one school.
Can
scholarships or grants made to an all boys or all girls school be included in a
school tuition organization's 90 percent annual allocation test?
Yes.
For Additional Arizona State Tax Information, call:
Phoenix: (602) 255-3381
Toll free from area codes 520 & 928 (800)
352-4090
For Hearing Impaired
TDD only: Phoenix:(602) 542-4021
Toll free from area codes 520 & 928 (800)
397-0256
Or Write to:
Arizona Department of Revenue
Taxpayer Information & Assistance
1600 W Monroe
Phoenix AZ 85007
For Related Tax Information:
Recorded Tax Information:
(602) 542-1991
Toll free from area codes 520 & 928 ; (800)
845-8192
Forms by Mail: (602) 542-4260
Internet Address : www.azdor.gov
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