ARS 43-1089 - A school tuition organization cannot award, restrict or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.

A School Tuition Organization (STO) is a 501c3 organization, certified by the state of Arizona under the Arizona Private School Tuition Tax Credit Law, A.R.S. Section 43-1089. This allows individuals to re-direct their State income tax to school tuition organizations (STO) that provide tuition scholarships to students at K-12 private schools in Arizona.

Any amount is appreciated and helps make a difference. The maximum credit you can declare is based on your tax filing status. The tax credit donation cannot exceed your total tax obligation but any unused credit can be carried forward for up to five years. To get the maximum benefit, we suggest you consult with a CPA or tax advisor.

When you make a donation to an STO, you receive an email that is your “tax credit” receipt. You can find forms 323 and 348 here (http://www.azdor.gov/Forms/Credits.aspx).

90% or more of all donations received during the fiscal year is allocated as a tuition scholarship, per state regulations.