Credit for Contributions to School Tuition Organizations
Arizona law provides a credit for cash contributions made to a private school tuition organization (STO) that provides scholarships or grants to qualified schools. 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 of cash contributed up to the maximum amount allowed. For 2021, the maximum amount of credit that a taxpayer can establish for the current taxable year is $611 for single taxpayers or heads of household. For married taxpayers that file a joint return, the maximum credit that can be established for the current taxable year is $1,221. In most cases, for married taxpayers who file separate returns, each spouse may claim only one-half (½) of the credit that would have been allowed on a joint return.