How to Claim the Arizona Private School Tax Credit (STO)
When Donating to Community Reinvestment: Low Income Based Scholarships Inc.
If you are filing Arizona personal income taxes and searching for how to claim the Private School Tuition Tax Credit, donations made to Community Reinvestment: Low Income Based Scholarships Inc. qualify for a dollar-for-dollar Arizona tax credit — not a deduction.
This credit is claimed directly on your Arizona state tax return, including when filing with TurboTax or a CPA.
Where Arizona STO Donations Are Claimed on Your Taxes
Arizona School Tuition Organization (STO) donations are claimed on your Arizona state return, not your federal return.
When you donate to Community Reinvestment: Low Income Based Scholarships Inc., your contribution is reported on:
- Arizona Form 323 — Private School Tuition Tax Credit
- (If applicable) Arizona Form 348 — Additional / Overflow Credit
- These credits flow through Arizona Form 301 and reduce your state tax liability dollar-for-dollar
This means your donation directly offsets what you owe Arizona, instead of going to the state.
Exact Language You’ll See in TurboTax (Arizona Return)
When filing your Arizona state taxes in TurboTax, you will be asked a question similar to:
“Did you donate to an Arizona private school or a School Tuition Organization (STO)?”
or
“Did you make a contribution to an Arizona private school tuition organization by April 15?”
When prompted:
- Select YES
- Enter your donation amount
- Enter Community Reinvestment: Low Income Based Scholarships Inc. as the organization
TurboTax will automatically generate Form 323 and apply the credit correctly to your Arizona return.
Important: How Our STO Is Different (and Why It Matters)
Community Reinvestment: Low Income Based Scholarships Inc. is a 501(c)(3) Arizona-certified School Tuition Organization that:
- Exclusively serves low-income and foster-care K–12 students
- Does not assign scholarships to specific children requested by donors
- Distributes funds to qualifying students based on financial need
- Aligns with community reinvestment and equitable access to education
Your donation supports students who would otherwise be unable to afford private education, while still providing you the full Arizona tax credit benefit.
Arizona Private School Tax Credit Amounts (Individuals)
For the current tax year, individuals may claim up to:
- $1,535 — Single filers / Head of Household
- $3,062 — Married Filing Jointly
(Amounts subject to annual adjustment by the Arizona Department of Revenue.)
If you owe Arizona taxes, donating up to these limits allows you to redirect your tax dollars to scholarships instead of the state general fund.
When You Can Donate and Still Claim the Credit
You can donate to Community Reinvestment: Low Income Based Scholarships Inc.:
- Anytime during the tax year, OR
- Up through April 15 and still claim the credit on your Arizona return
This makes the Arizona STO tax credit one of the most flexible and powerful tax credits available to individuals.
FAQ
Q: Where do I enter Arizona private school tax credit donations in TurboTax?
A: On the Arizona state return under School Tax Credits. Select that you donated to a School Tuition Organization and enter Community Reinvestment: Low Income Based Scholarships Inc.
Q: Is an Arizona STO donation a deduction or a credit?
A: It is a dollar-for-dollar Arizona tax credit, not a deduction.
Q: Can I donate to a low-income scholarship STO instead of a private school?
A: Yes. Community Reinvestment: Low Income Based Scholarships Inc. is an Arizona-certified STO that exclusively supports low-income and foster-care students.
Q: Do I need a receipt for TurboTax?
A: Yes. Your donation receipt from Community Reinvestment: Low Income Based Scholarships Inc. contains the required information for Form 323.
