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The Arizona Private School
Tuition Tax Credit Law allows a married couple
filing jointly to make a donation up to $1000
each year to the Arizona Lutheran Scholarship
Organization, Inc. and receive a dollar for
dollar tax credit against their
Arizona State income tax. This is a tax credit,
not a deduction. A single taxpayer is limited to
$500. If the tax payer has actual Arizona state
income less than the minimum allowable, the
available credit in a given year is limited to
the actual tax owed. The law allows a carry
forward for up to five years if a donation is
made in excess of the actual state income tax
due. Arizona State income tax forms 301 and 323
are used for claiming the credit.
The public school extracurricular
activities tax credit of $250 for married
couples filing jointly may be taken in addition
to the private school tuition tax credit.
A taxpayer may also be able to
claim a federal deduction for their donation to
the Arizona Lutheran Scholarship Organization,
Inc., since it is a not-for-profit organization.
Taxpayers should consult their tax advisor for
specific tax advice. |
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