Tuition Tax Credit

What it is, How it Works, Benefits

Arizona law (A.R.S. AZ 43-1089) provides for a credit of up to $1,000 against state income tax obligations to any Arizona taxpayer for payments made to a qualified School Tuition Organization (STO).

The Arizona Episcopal Schools Foundation is a qualified School Tuition Organization and a non-profit Arizona corporation, which is exempt under Section 501(c)(3) of the Internal Revenue Code.

The law states 90% of the STO’s funds go directly to qualified students attending member schools. The Foundation gives 90-94% of its funds to qualified students.

The maximum for married couples filing jointly is $1,000. Single or head of household is $500. A taxpayer(s) can contribute to both the private school tax credit and the public school tax credit.

The Foundation does not accept funds designated for a particular child.

The Foundation qualifies for employer matching funds programs. Please double your contribution and check with your employer!

The information presented here is not intended to provide tax or legal advice. Please consult your tax advisor or the State Department of Revenue for questions about individual issues. For more information visit the Arizona Department of Revenue web site.

Facts about the Tax Credit

What: The Arizona State Tax Credit for Contributions to School Tuition Organizations

Who: All Arizona taxpayers can participate

Why: To create educational opportunity through scholarships for students to attend the Foundation’s schools.

When: Contributions must reach us by December 31 . The Foundation supplies tax documentation for your convenience

How: Please send any amount up to your qualified maximum in the attached envelope. The maximum for married couples filing jointly is $1000. Single or head of household is $500.

Cost: Zero Dollars! Your Arizona tax obligation is the funding source.