Arizona Private School Tax Credit
Arizona tax law (A.R.S. AZ 43-1089) gives Arizona taxpayers a dollar-for dollar tax credit on their state income tax obligations, for donations made on behalf of a school, through a qualified School Tuition Organization (STO). Magical Journey Learning Center is proud to partner with The Institute for Better Education (IBE). Institute for Better Education is a state-approved School Tuition Organization (STO) that administers three state tax credit scholarship programs–the Individual Tuition Tax Credit Program (both the ORIGINAL and the PLUS), the Corporate Tuition Tax Credit Program (both for C-Corps and S-Corps), and Lexie’s Law for Disabled and Displaced students.
Parents can donate to Institute for Better Education on behalf of Magical Journey Learning Center. This money is subsequently disbursed to Magical Journey families based on need. Additionally, friends or family can recommend a child who attends MJLC by specifying that child's name on their donation. Parents cannot donate to their own tax dependent. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer's own dependent (a.k.a.: swapping recommendations with another parent for each other's children is prohibited).
Arizona taxpayers may contribute to the private school tax credit, the public school tax credit, foster children and the working poor tax credit.
How much can I donate?
There are two separate Individual school tax credits, The ORIGINAL Individual Tuition Tax Credit and the PLUS Tax Credit. The maximum donation amounts increase every year. The amounts shown below are for the 2015 tax year.
Tax Credit #1: The Original Tax Credit allows a $535 credit for a single taxpayer and a $1070 for a married couple filing jointly. Donors receive a dollar-for-dollar tax credit against their annual Arizona state income tax liability.
Tax Credit #2: The PLUS tax credit (became law in 2012 as A.R.S. 43-1089.03), allows donors to receive a dollar-for-dollar credit for a contribution over and above the Original tax credit donation. The Arizona taxpayer must first (or simultaneously) contribute the full Original amount ($1070/married or $535/single) to be eligible to donate any additional amount to the PLUS tax credit program.
IMPORTANT: If the taxpayer has actual Arizona state income tax less than the maximum allowable, the available credit in a given year is limited to the taxpayer's actual tax (otherwise known as your liability). The tax law allows a carry forward for up to five years if a donation is made in excess of the actual state income tax due. Use forms 323 (Original tax credit) 348 (Overflow tax credit) and 301 (to summarize multiple tax credits) to claim the credit on your Arizona taxes.
We always recommend you consult with your tax adviser regarding your specific situation. Other credits, deductions, and various factors may apply and could affect your end result. If your tax adviser isn't aware of recent changes, direct them to this summary of 2014 highlights.
How do I donate?
Donations can be made in minutes on the website for The Institute for Better Education. Please designate Magical Journey Learning Center as your school of choice.
Donations may also be made by check and mailed to:
The Institute for Better Education
911 S. Craycroft
Tucson, Arizona 85711
Questions: contact IBE at 520-512-5438
Email IBE: services@IBEscholarships.org
IBE Hours of operation:
Monday-Thursday: 8:00 a.m-4:00 p.m
Friday: 8:00 a.m-12:00 p.m