Skip to content

WITHHOLDINGS TAX REDUCTION

Without Affecting Your Take Home Pay check, Contribute Your State Income Tax

Arizona’s withholding tax reduction law (A.R.S. 43-401)  allows individuals to authorize their employer to send their state  withholding tax amount to STO4KIDZ a School Tuition Organization that awards scholarships to qualifying students attending qualifying private schools in Arizona. This is considered a dollar-for-dollar tax credit contribution.  It will be the same as if you made your tax credit contribution in one lump sum, this enables you to contribute smaller dollar amounts throughout the year, without affecting your take-home pay check. You still have to claim the tax credit when filing your taxes. Please consult your tax advisor.

Contribute to STO4KIDZ through your Arizona state tax withholdings is a simple process:

  • Check with your employer to see if they are willing to  provide this benefit.
  • Fill out a withholding income tax pledge form and mail or email it to STO4KIDZ.
  • Your employer, if they agree to participate, will reduce your state tax withholdings per-pay-period and will send that amount to STO4KIDZ on your behalf. This portion cannot exceed your state withholding dollar amount for each pay period that is set with your employer. Consult your payroll department to know the withholding percentage per-pay-period to determine how much will be contributed for the year to indicate on your pledge form.
  • Once withholding tax reduction is set up, contributions are automatic for the rest of the year, and will automatically stops once your contribution limit is reached. (the limit you indicate on our pledge form).
  • If your contribution exceed your state tax liability for the year, you can still claim the excess amount to reduce the following tax year. (up to 5 years)