AZ – Arizona Form 323 – Credit for Contributions to Private School Tuition Organizations

Table Of Contents

Article: 50170

Overview

Arizona Form 323 allows individual taxpayers to claim a nonrefundable income for voluntary monetary contributions made to certified School Tuition Organizations (STOs). These contributions provide funding for scholarships awarded to students attending private schools in Arizona.

For tax year 2024, the maximum allowable credit is:

  • $731 for taxpayers filing as Single or Head of Household
  • $1,459 for taxpayers filing as Married Filing Jointly

Credit Limitations and Carryforward Provisions

The credit reported on Form 323 is nonrefundable, meaning it may reduce a taxpayer’s Arizona income tax liability to zero, but it cannot result in a beyond the amount of tax owed.

Any unused portion of the credit may be carried forward for up to five consecutive tax years.

The maximum credit amount established for the current tax year does not include any valid unused carryover amounts from prior years. Because the credit is nonrefundable, the total amount of credit available—including the current year’s credit and any carryover—may not exceed the taxpayer’s total Arizona income tax liability for the year.

Reporting Form 323 – Credit for Contributions to Private School Tuition Organizations

To report Form 323 – Credit for Contributions to Private School Tuition Organizations, follow the steps below:

  1. Go to the State taxes section.
  2. Select I’d like to see the forms I’ve filled out or search for a form.
  3. In the drop list, select Arizona.
  4. Select the Credits tab.
  5. Select 323 – Contributions to School Tuition Credit to add and open the form.
  6. Enter the credit amount on the applicable lines.
  7. Click Save to apply changes.
Credits from prior tax years that were not fully utilized but are eligible for carryover to the current tax year should be reported in Part 2. When entering these amounts, you must provide both the original credit amount and the portion previously applied in prior tax years. If you are claiming carryover credits, you are required to select the I have verified the amounts are correct check box.
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