Maximize Control of Your Arizona Tax Dollar
In 1997, the Arizona State Legislature enacted A.R.S. § 43-1089, The Arizona Individual Private School Tuition Tax Credit Law. This Original Individual Tax Credit law allows Arizona taxpayers to give what they would otherwise owe the state in income tax to a School Tuition Organization (STO), such as Yuma’s Education Scholarship Fund for Kids, Inc. as a donation instead.
In 2012 the Arizona Legislature enacted A.R.S. § 43-1089.03, the Overflow Tuition Tax Credit Law (also known as the Switcher Tax Credit. After contributing the maximumamount allowed under the Original Tax Credit, all additional contribution amounts are the applied to the Overflow Tax Credit.
The state tax credit maximums change each year according to the percentage increase in the Phoenix Metropolitan Cunsumer Price Index. After making the donation, taxpayers can claim it on their Arizona tax form to receive a dollor-for-dollar tax credit against their state income tax liability. If the taxpayer has actual Arizona state income tax liability less than the allowable maximum credit, then the tax law allows a carryover of any unused donation for up to five years. The taxpayer should consult with their tax advisor for specific tax advice.
Scholarships are awarded from funds in which donors are utilizing the Arizona Individual Private School Tuition Tax Credit by making contributions each year. Donor scholarship recommendations are allowed and considered in determining awards. Financial need will also be considered when awarding scholarships. All final decisions in awarding scholarships are at the discretion of the YES Fund for Kids board of directors. A donation recommendation may not be made for ones own dependent.
The 2019 Arizona State Tax Credit deadline for contributions is April 15, 2020, so you can calculate your state tax liability and determine the maximum amount of credit that you should take. If the contribution is made January 1 through April 15, 2020, then the transaction may be considered a 2019 of a 2020 Arizona tax credit.
2019 Individual Private School Tax Credit Maximums
|Single Taxpayer||Tax Credit Amount||Married Tax Filers||Tax Credit Amounts|
|Original Tax Credit||$569||Original Tax Credit||$1,138|
|Overflow Tax Credit||$566||Overflow Tax Credit||$1,131|
|Combined Total||$1,135||Combined Total||$2,269|
Donation by Check Yes!Donationform 2019(pdf)
Payroll Tax Deduction Option-
Option currently under construction- please check back soon
Out of State Donations
We understand that many families have moved from another state, leaving behind a support system of family and friends. Since Yuma’s Education Scholarship Fund for Kids, Inc. is a charitable 501c(3) organization, out of state donors may be eligible to claim a charitable tax dedution (not a full tax credit) on their Federal and/or state tax returns. In this situtation, there are no minimum or maximum contribution amounts. The taxpayer should consult with their tax advisor for specific tax advice.
Claiming the Tax Credit
Original Tax Credit is claimed on Arizona Tax Form 323
Overflow/Switcher Tax Credit is claimed on Arizona Tax Form 348