Arizona’s school tuition tax credit program can be difficult to understand. We’re here to make it easier. Explore our short videos and easy-to-understand Flyers that explain how the program works, how eligible contributions may qualify for an Arizona state tax credit, and how your support helps create educational opportunities for Arizona students.

Whether you are considering making a contribution or you are a tax preparer helping a client understand the program, these materials are designed to make the important information easier to understand and share.

Important: The educational materials on our website are intended to provide general information about Arizona’s school tuition tax-credit program. It is not financial or tax advice. Always consult a qualified tax expert (your CPA, Tax preparer, Enrolled Agent, etc.) before acting upon this information.

These materials are designed for:

• Arizona taxpayers and potential donors.
• Tax preparers helping clients understand the program.
• Anyone who wants to learn how Arizona’s school tuition tax credit works.

Arizona allows eligible taxpayers to contribute to a certified School Tuition Organization, or STO, and claim a credit against their Arizona state income-tax liability.

This gives taxpayers an opportunity to use part of what they would otherwise pay in Arizona state income tax to help fund tuition scholarships for eligible students attending qualified Arizona private schools.

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NOTE:  The credit may reduce eligible Arizona state income tax dollar for dollar, subject to applicable limits and tax liability. It does not automatically create a refund or reduce federal income tax.

A School Tuition Organization is a qualified nonprofit organization certified by the Arizona Department of Revenue to receive eligible tax-credit contributions and award tuition scholarships.

Scholarkids is an IRS-approved 501(c)(3) nonprofit organization and a certified Arizona School Tuition Organization. We use eligible contributions to provide scholarships for students attending qualified Arizona private schools.

NOTE:  The Arizona Department of Revenue certifies STOs, but each STO independently receives contributions, issues receipts and awards scholarships in accordance with Arizona law. An STO is not a school and does not prepare tax returns.

A tax credit and a tax deduction affect a tax return differently.

A tax deduction generally reduces the amount of income subject to tax. A tax credit generally reduces the amount of tax owed. Arizona’s school tuition tax-credit program provides a state income-tax credit for qualifying contributions, subject to applicable requirements.

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NOTE:  Taxpayers must make the contribution and have sufficient Arizona state income-tax liability to claim the credit. Federal tax treatment may differ, so consult a qualified tax professional. 

Arizona provides two individual private-school tuition tax credits:

• The Original Individual Credit
• The Switcher Individual Credit

Each credit has a separate annual limit (which depends on whether your filing status is single or married filing jointly) and a separate Arizona tax form. Together, they determine the maximum amount that may qualify for the combined individual STO tax credits.

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NOTE: The Original Credit maximum must be met before any additional contribution may qualify for the Switcher Credit. One contribution to Scholarkids may cover both credits, but each portion must be reported on the correct Arizona form.

Arizona establishes maximum credit amounts for each tax year. The limits depend on filing status and generally increase over time.

The maximum contribution eligible for the credit is not necessarily the amount every taxpayer should contribute. Taxpayers should consider their expected Arizona state income-tax liability and individual circumstances before deciding on an amount.

2026 Contribution and Claim Limits:

• Married Filing Jointly: Total combined maximum of $3,131 (up to $1,570 for the Original Credit and $1,561 for the Switcher Credit).
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• Single / Head of Household: Total combined maximum of $1,571 (up to $787 for the Original Credit and $784 for the Switcher Credit).

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NOTE: The published maximum is a limit, not a guaranteed credit. The amount a taxpayer may claim depends on the eligible contribution, available Arizona tax liability and other credits claimed. Any contribution above the limit will not qualify for this Arizona tax credit. 

A contribution’s date affects the tax year for which the credit may be claimed.

Under current Arizona rules, an eligible individual STO contribution made during the calendar year may generally be claimed for that tax year. A qualifying contribution made between January 1 and the applicable April tax-filing deadline may generally be claimed for either the current year or the immediately preceding tax year, subject to the taxpayer’s election and applicable requirements.

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NOTE: A contribution can be claimed for only one tax year. Keep your Scholarkids receipt and confirm the correct tax year with a qualified tax professional.

The contribution and tax-filing process can be understood in four basic steps. Scholarkids also offers a recurring contribution option, allowing donors to spread their planned annual contribution across smaller, more manageable payments.

Step 1 — Determine your amount

Review the current credit limits and consider your expected Arizona state income-tax liability. Decide whether you prefer to make one contribution or divide your planned annual amount into recurring payments.

Step 2 — Make your contribution

Contribute directly to Scholarkids using an available payment method. You may make a one-time contribution or select a recurring option that automatically processes smaller contributions on a regular schedule.

Step 3 — Keep your contribution records

Scholarkids provides a receipt showing the amount and date of each contribution. Keep all receipts and contribution records for the tax year in which you plan to claim the applicable credit.

Step 4 — Claim the applicable credit

Use your Scholarkids contribution records and the applicable Arizona forms when preparing your state income-tax return. Only qualifying contributions completed by the applicable deadline may be considered for that tax year.

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NOTE: Making a contribution and claiming the tax credit are separate steps. Only completed payments may qualify, subject to Arizona credit limits, tax liability and applicable rules. Keep your Scholarkids receipts and consult a qualified tax professional about your eligibility. 

Three Arizona forms are commonly connected with individual private-school tuition tax credits:

• Form 323 is used for the Original Individual Credit.
• Form 348 is used for the Switcher Individual Credit.
• Form 301 summarizes the taxpayer’s nonrefundable individual tax credits.

The forms required depend on which credits the taxpayer is eligible to claim.

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NOTE: Use the Arizona tax forms and instructions for the correct tax year. Scholarkids provides contribution receipts but does not prepare, review or file tax returns. Tax preparers are responsible for determining the correct tax treatment for each taxpayer.

An eligible contribution does more than provide a potential tax benefit. It helps Scholarkids create educational opportunities for Arizona students whose families face the greatest financial barriers.

Scholarkids ranks scholarship applicants by financial need, with the lowest household incomes receiving priority. We are building toward full-tuition scholarships that provide a complete answer to the financial barrier—not a small award that leaves an unaffordable tuition balance behind.

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NOTE: A donor may recommend an eligible student who is not their dependent, but recommendations do not determine scholarship awards. Donation-swapping arrangements are prohibited, and all awards depend on financial need, student eligibility, available funding and Arizona law.

These materials are designed to support clear, year-round conversations between taxpayers and their own tax professionals.

Tax preparers can use the videos and Flyers to explain the program, help clients plan before the filing deadline and identify the records and Arizona forms that may be required.

Before preparing a return involving a Scholarkids contribution, review:

• Contribution amount and date
• Applicable tax year
• Taxpayer filing status
• Scholarkids contribution receipt
• Original and Switcher Credit limits
• Available Arizona state income-tax liability
• Other nonrefundable Arizona credits
• Forms 301, 323 and 348, as applicable
• Current Arizona Department of Revenue instructions
• Any available credit carryforward from an earlier year

When Arizona taxpayers understand how the school tuition tax credit works, they can make more informed decisions about where part of their state income-tax dollars can go.

A contribution to Scholarkids helps us work toward full-tuition scholarships for Arizona families who need them most—turning a tax-credit opportunity into a child’s opportunity to learn, grow and build a stronger future.