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 receives donations through two state-approved STO’s- Arizona Tuition Connection (ATC) and The Institute for Better Education (IBE). These STO’s provide Magical Journey scholarships through three state tax credit programs.
How do I donate?
To learn more about making a donation to Magical Journey or a specific student, please contact:
Institute for Better Education
Arizona Tuition Connection
How much can I donate?
There are two separate Individual school tax credits, The ORIGINAL Individual Tuition Tax Credit and the SWITCHER/PLUS Tax Credit. The maximum donation amounts increase every year. The amounts shown below are for the 2017 tax year.
2017 TOTAL maximum donation amounts:
Single - $1,089
Married - $2,177
Tax Credit #1: The Original Tax Credit allows a $546 credit for a single taxpayer and a $1,092 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 ($1,085/married or $543/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.