Q: What are the contribution limits for Tax Year 2025?
A: Arizona sets the limits based on tax filing status; Single filers can contribute $1,535; Married filers can contribute $3,062.
You may donate up to these specified amounts or your actual state tax liability, whichever is less.
Click ** here ** to see married & single filer examples
Example 1: Fred and Wilma are married filing jointly. Together they have $4000 in AZ State Tax Liability for Tax Year 2025. Fred and Wilma can donate max $3062 towards the Private School Tax Credit to receive a full refund. They cannot donate their full tax liability of $4000 as it will exceed the married max limit.
Example 2: Barney and Betty are married filing jointly. Together they have $2000 in AZ State Tax Liability for Tax Year 2025. Barney and Betty can contribute max $2000 towards the Private School Tax Credit to receive a full refund. They cannot donate up to the max of $3062 as it exceeds their tax liability amount.
Example 3: Taylor is filing single; Taylor has $2200 in AZ State Tax Liability for Tax Year 2025; Taylor can contribute max $1535 towards the Private School Tax Credit to receive a full refund. Taylor cannot donate her full tax liability of $2200 as it will exceed the single filer max limit.
Example 4: Travis is filing single; Travis has $800 in AZ State Tax Liability for Tax Year 2025; Travis can contribute max $800 towards the Private School Tax Credit to receive a full refund. Travis cannot donate up to the max of $1535 as it exceeds his tax liability amount.
Q: How do I determine my state income tax liability/tax obligation for Tax Year 2025?
A: When preparing your 2025 taxes, reference line 48 of AZ Tax Form 140 to determine your state tax liability/obligation; If you haven't prepared your 2025 taxes yet, you can always reference last year's AZ Tax Form 140 to get a ballpark estimate of your 2025 state tax liability.
Q: What is the deadline to participate in the Arizona Private School Tax Credit Program for Tax Year 2025?
A: Redirected contributions can be made now through April 15, 2026.
Q: Is this program really too good to be true? I am worried I am going to do a contribution then not get refunded by the State and be out of pocket for the money contributed.
A: No, the program is not too good to be true! The program is 100% legitimate and been in place since 1998. Arizona politicians on both sides of the aisle finally got something right when putting this program in place decades ago. Thousands of people like you have contributed and all have gotten their refunds as long as they adhered to the guidelines set by the State. On a personal note, we have participated in this program for other families' children for at least 10 years; We have been refunded 100% of the time by the State.
Q: How much time does it take me to participate in this program?
A: Not much time at all; If I had to estimate it's approximately 10 minutes total; Going to the STO website to contribute takes about 5 minutes; When filing your taxes it may also add about 5 minutes; We use an accountant to file and it’s very fast for her to fill out the required forms to ensure we receive the refund when we contribute (note: per state law, we are NOT allowed to contribute towards our own children; we participate in this same program but contribute to other families' kids). I have also spoken to a contributor who prepares her own taxes using TurboTax; I was told the filing process is very straightforward and quick even if you do your own taxes without the services of an accountant.
Q: How do I participate in the Arizona Private School Tax Credit Program and contribute to Logan or Abby?
A: My wife or I will send you a contribution link from the School Tuition Organization (STO) that will have important information prepopulated such as our kid's full name and the name of their school; When you contribute, the STO can then route the contributions to their scholarship account.
Q: When filing my 2025 taxes, if I end up owing AZ state taxes, can I still participate in this program?
A: Yes! Let’s say you prepare your 2025 taxes and you end up owing $300 to AZ in owed state taxes when filing:
If you are a single filer, you can still do a redirected contribution of the maximum amount $1,535; Arizona would issue you a refund of $1235 ($1535 – $300).
If you are a married filer, you can still do a redirected contribution of the maximum amount $3,062; Arizona would issue you a refund of $2762 ($3062 - $300).
Q: When filing my 2025 taxes, if I am due a refund because I paid AZ too much throughout the year, can I still participate in this program?
A: Yes! Let’s say you prepare your 2025 taxes and you are going to get a $400 refund from the state of AZ when filing:
If you are a single filer, you can still do a redirected contribution of the maximum amount $1,535; Arizona would issue you a refund of $1935 ($1535 + $400).
If you are a married filer, you can still do a redirected contribution of the maximum amount $3,062; Arizona would issue you a refund of $3462 ($3062 + $400).
Q: When filing my 2025 taxes, I took out the exact amount necessary from each paycheck for my state taxes; I won’t get a refund from AZ nor do I owe AZ any additional state taxes since they have all been paid in full for the year. Can I still participate in this program?
A: Yes! You will prepare your 2025 taxes, and you are not scheduled to get a refund from the state; But if you participate in the program, you will now be issued a state refund:
If you are a single filer, you can still do a redirected contribution of the maximum amount $1,535; Arizona would issue you a refund of $1535
If you are a married filer, you can still do a redirected contribution of the maximum amount $3,062; Arizona would issue you a refund of $3062
Q: My tax liability for the 2025 tax year (line 48 of AZ Tax Form 140) doesn’t reach the max amount for the Arizona Private School Tax Credit Program contribution limits. If I can’t contribute the max amount for my filing status (single or married), can I still participate in this program?
A: Yes! A max contribution is great and always appreciated, but if for whatever reason a max contribution isn’t possible, that is 100% ok.
Q: If I participate in the Arizona Private School Tax Credit Program and contribute to Logan or Abby, will the School Tuition Organization (STO) notify you that I made a contribution?
A: No, we are not notified if you made a contribution. Arizona Department of Revenue rules dictate that STOs may not share donor names with the families who receive the scholarships. However, my wife and I want to personally thank you for your donation so please let us know directly! There is no rule against you letting us know!
Q: Will I receive a proof of donation if I participate in the Arizona Private School Tax Credit Program?
A: Yes. The STO will email you a receipt which can be used as your proof of donation for Tax Year 2025.
Q: What state tax forms do I need to submit when filing my taxes to be reimbursed by the State of Arizona?
A: AZ Form 301 (general tax credit form); AZ Forms 323 & 348 (specific to Arizona Private School Tax Credit).