Frequently Asked Questions For Arizona Public School Tax Credits

Q.  What is the difference between a tax credit and a tax deduction?

A.   A tax deduction is an item that helps determine your final tax liability.  A tax credit is a reduction to your final state income tax liability.  Tax credits are very beneficial because they directly reduce your state income tax liability, lowering the amount of money that you will owe.

Q. What do I have to do to qualify for the Arizona Public School Tax Credit?

A.   To qualify for the Arizona Public School Tax Credit you must make cash contributions or pay fees to an Arizona public school for support of extra- curricular activities or for character education programs.

Q.  How do I document my contribution?

A.   CPLC will send you a letter confirming your contribution.  This letter documents your contribution and is necessary to support your tax credit. Payroll deductions also require a pay stub receipt.  Please make sure you include your name and home address on the donation page.

Q.  How do I file for the credit?

A.  There is a simple form (AZ Form 321) that is included with your state income tax filing that you or your accountant can complete.  This form is included with materials provided by the State of Arizona to all tax filers.

Q.  For which activities are Arizona Public School Tax Credits available?

A. An individual may claim a credit for making contributions of paying fees to a public school for support of extracurricular activities or character education program.  

Q.  Is a charter school considered to be a public school or a private school?

A.  A charter school is defined in A.R.S. Section 15-101 as a public school.  Therefore, charter schools, like Calli Ollin, Toltecalli Academy and Hiaki High School, are eligible for the credit for contributions made for fees paid to a public school to support extracurricular activities or character education.

Q. Must a taxpayer have a child in school in order to claim the Public School Tax Credit?

A.  No.

Q. Can I receive multiple tax credits?

A. Yes, you can receive a dollar-for-dollar tax credits for both the Charitable   Contribution Tax Credit and the Arizona Public School Tax Credit.

Arizona Public Schools Tax Credit