Credit for Contributions Made or Fees Paid to Public Schools
Arizona law provides a credit for cash contributions made and for certain fees paid to public schools in Arizona. The credit for contributions made or fees paid to a public school must be claimed in the year of the donation. “Public School” means a school that is part of a school district, a joint technical education district, or a charter school.
This credit is available only to individuals. Corporations may not claim this credit. A partnership may not pass the credit through to its partners. An S corporation may not pass the credit through to its shareholders.
The credit is equal to the amount contributed or the amount of fees paid. The maximum amount of credit that a taxpayer can establish for the current taxable year for contributions or fees paid is $200 for single taxpayers or heads of household. For married taxpayers filing a joint return, the maximum amount of credit that can be established for the current taxable year is $400. In most cases, for married taxpayers who file separate returns, each spouse may claim only one-half (1/2) of the credit that would have been allowed on a joint return.
If the allowable tax credit is more than your tax or if you have no tax, you may carry the unused credit forward for up to the next 5 consecutive taxable years' income tax liability.