School Tax Credit FAQ

What is a tax credit?
A tax credit is a dollar-for-dollar reduction in the actual tax owed. For example, if you owe $400 in state income taxes and you donate $200 to a public school for extracurricular activities, you may subtract the $200 from your tax bill and pay the state just $200.

Do I take this as a donation or a credit on my Arizona Income Tax Return?
You will take it as a Credit. Use Form 322 to take the full amount of your donation as a dollar-for-dollar credit against taxes you owe!

How much can I give?
For a single individual or head of household, the tax credit is $200. Individuals filing married or jointly, the tax credit is $400. You may split your $400 donation among more than one public school, but will still qualify for a maximum state credit of $400.

Do I have to have children enrolled in school?
No! Any household may donate up to $400 to be used for extracurricular activities.

Do I have to live within the district?
No! Any household that pays Arizona State Tax may make a donation to any school. Encourage others to donate to Phoenix schools most in need!

Do I have to donate the full amount?
No! Any amount you donate can be used as a credit against your tax liability. Arizona tax law (ARS 43-1089.01) allows taxpayers a tax credit of up to $200 if you are single or $400 per married couple. For example, if you donate $50, your state tax credit would be $50.

Do I have to donate to only one school?
No! You may split your donation among more than one public school or more than one activity, but will still qualify for a maximum state tax credit of $200 (or $400 per married couple).

How do I claim my tax credit?
No matter which form you use to file your taxes, there is a simple form for the school tax credit that is included when filed. Visit the Arizona Department of Revenue webpage and locate Form 322 to enter your tax credit amount.

 

More information can be found at the Arizona Department of Revenue brochure.