The Arizona Department of Revenue advises taxpayers they now have until May 17 to contribute to certified qualifying charitable organizations, qualifying foster care charitable organizations, school tuition organizations, and public schools and claim the tax credits on their 2020 individual income tax return.
Taxpayers Making Contributions or Paying Fees
An individual may claim a nonrefundable tax credit for making contributions or paying fees directly to a public school in this state for support of eligible activities, programs or purposes as defined by statute. The public school tax credit is claimed by the individual taxpayer on Form 322. The maximum credit allowed is $400 for married filing joint filers and $200 for single, heads of household and married filing separate filers.
For the purpose of claiming Arizona’s tax credit for contributions made or certain fees paid to a public school, the Arizona Department of Revenue now requires taxpayers report the school’s County Code, Type Code, and District Code & Site Number (CTDS) number on Form 322, which is included with the Arizona income tax return.
The CTDS is a nine (9) digit number that the Arizona Department of Education uses to identify Arizona public and charter schools.
Resources for Taxpayers:
Public Schools Receiving Contributions or Fees
A public school can accept contributions for eligible activities, programs or purposes. A credit is allowed against the taxes imposed by the state for the amount of any fees paid or cash contributions made by a taxpayer pursuant to section A.R.S. § 43-401, subsection G during the taxable year to a public school located in this state.
View Eligible Activities or Programs
- Extracurricular Activities - school sponsored activities for enrolled students that supplement the schools education program
- Character Education - a course of study designed to illustrate certain character traits (see guidelines for list of allowed topics)
- Standardized Testing and Fees - tests that are widely recognized and accepted by universities
- Career and Technical Education Assessment (CTE)
- Cardiopulmonary Resuscitation Training (CPR) - based on nationally recognized guidelines
From and after June 30, 2019 through June 30, 2022.
- Capital Items - defined in the Uniform System of Financial Records, including those items listed in section A.R.S. § Title 15-903, subsection C paragraphs 2 through 8 (see guidelines for capital items)
- Community School Meal Programs - a school meal program that takes place before or after the regular school day and is on school property
- Students Consumable Healthcare Supplies
- Playground equipment and shade structures for playground equipment
View How to Determine if an Extracurricular Activity is Tax Credit Eligible
Please note that if a Public School answers NO to any of these questions, the activity will not qualify.
- Is the activity sponsored by the district/school?
- Is the activity for enrolled students?
- Is the activity optional?
- Does the activity supplement the district/school’s educational program?
- If an activity fee is charged, is it paid directly to the district/school?
- If an activity fee is charged, was the fee for this activity adopted by the governing board at a public meeting after notice to all parents of enrolled students?
- If an activity fee is charged, has the governing board authorized the principal to waive all or part of the activity fee if it creates an economic hardship for a student?
* A Public School can contact their school's attorney if they are unsure.
View Requirements for Public Schools When Accepting Contributions or Fees
- Send a calendar year report to ADOR, due February 28th
- Issue a receipt to the taxpayer - name of school, CTDS (Country Code, Type Code, and District Code & Site Number) for the school site, taxpayers name and address, date, amount and activity type or not designated.
For additional questions from public schools:
Elizabeth St. Clair
Resources for Public Schools: