AZ Tax Credit

5 Steps to Making Your AZ Taxes Fund Education!

1.  Start your AZ taxes to find your total AZ tax liability
1. On the AZ Form 140, this is on line #48 “Sub-total of tax”
2. Tax software usually calls this “State Tax Liability”
2.  You may contribute up to this amount or for 2023, $1307 single/$2609 joint  (whichever is less).
3.  Select a School Tuition Organization (STO-several listed on the right).
4.  Follow the organization’s directions to make an AZ tax credit contribution, designating either a specific child or Saguaro Hills Adventist Christian School the recommended recipient. Keep your receipt and file it when you submit your state taxes.
5. In order to claim your tax credit donation, you must complete Arizona tax forms 323 (and form 348 for Switcher (PLUS/Overflow) donations) and 301. The total from form 301 is entered on line 51 of your AZ form 140 and dollar for dollar, reduces your taxes owed or increases your refund earned. These forms are filed along with your Arizona income tax forms.
Forms and instructions for completing them are available from the Arizona Department of Revenue. Click on the links below for tax forms and instructions for completing them:

Form 301 Nonrefundable Individual Tax Credits and Recapture

Form 323 Credit for Contributions School Tuition Organization

Form 348 Credit for Contributions to Certified School Tuition Organization – Individuals


If you need further assistance regarding tax filing or completion of tax forms, please consult your tax preparer. The SHACS cannot assist with tax preparation.

Pro Tip: If you make your donation via Credit Card and immediately file your AZ taxes, if you earned a refund, it will probably arrive before the Credit Card bill is due!

Practical Examples of How Tax Credits Work

To better understand how tax credits work, CLICK HERE TO SEE SEVERAL DESCRIPTIVE FAMILY SCENARIOS.


Common STOs SHACS regularly works with:


Ø Individual Donors:
Ø Corporate Donors:


How it Works, the long version:

Donors may contribute at any time throughout the tax year (though individual STOs may have restrictions). Donations may be made in full (see below chart) or may be made in smaller increments at the donor’s discretion, depending on the donor’s Arizona state tax liability. (Corporations may also donate, visit one of our Corporate STO partners for more information.)


Two scholarship programs may contributed to by individual Arizona taxpayers: the Original Individual scholarship program and the PLUS/Switcher scholarship program.


Any child enrolled in private school, grades K-12 OR a disabled preschooler with an Arizona public school IEP or MET who is at least 3 years of age qualifies for the Original Individual program. To qualify for the PLUS program a child must meet at least one of these criteria:

  • Entering kindergarten
  • Received a previous Low-Income Corporate, “PLUS”/Switcher or Corporate Displaced/Disabled scholarship in a previous academic year and continued to attend a qualified private school
  • Disabled preschooler enrolled in a qualified disabled preschool
  • Dependent of active duty military stationed in Arizona on orders
  • Transferring from:
    • An Arizona public or charter school with at least 90 days of attendance in the previous academic year or one full semester in the same year; or
    • Transferring from an Arizona homeschool program; or
    • Transferring from the Empowerment Scholarship Account (ESA) program in the previous academic semester; or
    • A public, private or homeschool program from out of state or out of country.

The amounts that may be contributed are listed below:

Original Individual


2022 Single filers maximum donation: $623

2022 Married filing jointly maximum donation: $1,245

2022 Single filers maximum donation: $620

2022 Married filing jointly maximum donation: $1,238

2023 single filers maximum donation: $655

2023 married filing joint maximum donation: $1,308

2023 single filers maximum donation: $652

2023 married filing joint maximum donation: $1,301


By law, you may only donate to PLUS/Switcher after you have fulfilled your Original Individual donation for that tax year.


After making your donation, either provides the receipt to your accountant or, if completing your own taxes, includes the donation given on AZ form 140 when filing Arizona state taxes. (You will also need to complete AZ form 323 for Original donations (and AZ form 348 for PLUS donations) and  AZ form 301 (which totals all Arizona state tax credits).)


The donation given to an STO reduces the donor’s Arizona state tax liability by that amount, not to exceed the maximum amount allowed, listed in the donation chart above. The credit will either reduce the amount you would expect to owe the state or increase the expected refund.


Want to contribute the full amount but can’t afford to give it all at once? Many STOs have provisions for incremental monthly donations.