FREQUENTLY ASKED QUESTIONS

About Us

Individual Tax Credit Contribution

STO4KIDZ accepts contributions throughout the year. Contributions must be made prior to filing your taxes but no later than April 15.

You can contribute up to the combined maximum of the Original ARS 43-1089 and the Switcher ARS 43-1089.03, or your actual Arizona tax liability, whichever is less, and receive a dollar-for-dollar Arizona state tax credit. If you have no liability, you cannot receive a dollar-for-dollar tax credit.

The total tax credit dollar amount for each year is listed bellow.

When you are filing your taxes, you can claim the tax credit by using the Arizona forms 301 and 323 along with state income tax forms. However, if you contribute to the Switcher program, you also need to file a 348 form. Also, use AZ Schedule A to claim the federal deduction. All these forms and more can be found at azdor.gov.

2021 Arizona Tax Forms: Instruction

Form 301 (Tax Credit Summary) Instruction

Form 323 (Original Tax Credit) Instruction

Form 348 (Switcher/Overflow Tax Credit) Instruction

Schedule A (Claiming Federal Deduction) Instruction

Yes! You may recommend anyone who is not your child or dependent. STO4KIDZ selection committee retains discretion regarding all awards. If you have no student preference, you have the option to recommend a private school of your choice. Your tax contribution will then be considered for students attending that school who have completed applications with STO4KIDZ, or you may contribute to STO4KIDZ general funds to be awarded to any qualified student at a private school. The law prohibits parents from swapping tax credit to benefit either taxpayer’s own dependent.

A minimum 90% of your contribution is used for scholarship award on a monthly basis.

Yes.  STO4KIDZ is a tax-exempt charitable organization pursuant to federal law, Section 501(c)(3). Federal I.D. Number 82-4886421

An official tax receipt will be emailed to your provided email address.  If you need a receipt immediately, please contact us at INFO@STO4KIDZ.ORG. We will gladly accommodate your request.

Thank you.

STO4KIDZ is a 501(c)(3) non-profit, charitable organization. You should consult your tax advisor for your specific tax question.
 
We sincerely welcome and appreciate your support and participation in this most worthwhile program at no out-of-pocket cost to you.

Corporate Tax Credit Contribution

Invest in children at NO NET COST to you or your company! 

 

Take the tax credit up to 100% of your Arizona income tax liabilities.  Be the HERO and make a difference! This is truly a Win-Win for you and Arizona students.

The state of Arizona allows eligible businesses to allocate their tax liabilities and receive a dollar-for-dollar tax credit for up to 100% of their Arizona state tax liabilities.  Simply redirect money that you would otherwise be paying in state income taxes and provide scholarships for Arizona K-12 students with verified finical needs.  This is not a donation but a dollar-for-dollar tax credit. To participate, the company does not have to be based in Arizona, provided it pays Arizona tax liability.  Submit your Non-Binding Pledge form here.

 

Corporate Tax Credit History & Facts: (A.R.S.§20-224.06 and § 43-1183)

In 2006 and then in 2008, the Arizona State Legislature passed into law “The Corporate Income Tax Credit” and then the Disabled/Displaced Corporate Income Tax Credit, allowing businesses with an Arizona tax liability to allocate up to 100% of their tax liability and make a contribution to a qualified School Tuition Organization such as STO4KIDZ, and receive a dollar-for-dollar Tax Credit, may also qualify to claim that amount on their federal taxes as a donation.

 

Who Can Participate:

  • C- Corporations
  • S- Corporations and LLC’s filing as an S-Corporation
  • Insurance Companies that pay premium taxes in Arizona

The company does not have to be based in Arizona, provided it pays Arizona tax liability.  

 

Who Will Benefit From The Corporate Tax Credit:

  •  K-12 students with a demonstrated financial need
  • Preschool–12 students with disabilities
  • Kindergarten students with demonstrated financial need
  • Foster students
  • US Armed Forces dependent
  • Students transferring from a public or charter school with demonstrated financial need
  • Students previously received Corporate or Switcher scholarships with demonstrated financial need

 

How To Proceed:

First:

1) Determine your business tax liability for the current year. You can allocate, the total corporate tax liability amount.

2) Complete and submit your application by visiting STO4KIDZ.ORG  or call for assistance at 480.823.8052.

 

Then:

1) STO4KIDZ will submit a Tax Credit Contribution Approval Request to the Arizona Department of Revenue (ADOR) on behalf of your company. (Applications must be submitted by an STO)

2) The request will be approved if the state cap has not yet been met. If the cap has been met, ADOR will create a waitlist based on the order in which the requests are received.

3)  STO4KIDZ will notify you the same day ADOR informs us of the approval. Corporation has 20 calendar days to fund STO4KIDZ in order to keep the tax credit.

4) Once STO4KIDZ receives the contribution funds ADOR will be notified and STO4KIDZ will provide the company with a receipt to claim the tax credit.

5) When filing the company’s taxes, you will take the corporate income tax credit on the Standard 120 Form and file a 335 Form, listing the credit amount.                                           

6)   STO4KIDZ awards tuition scholarships to qualifying students.

 

Here, you may print the Fact-Sheet.

  • Immediate reduction in your corporate income taxes.
  • No out-of-pocket cost to you or your corporation.
  • Can allocate up to 100% of your corporate state income tax liabilities.
  • Receive a dollar-for-dollar tax credit.
  • May also qualify to claim your contribution on your federal taxes as a donation to STO4KIDZ, a 501c3 non-profit charitable organization.
  • You benefit and aid K-12 students and schools in Arizona.
  • Boost your community image as a corporate “good citizen”.
  • Provide scholarships for eligible K-12 Arizona private school students.
  • STO4KIDZ in turn awards a minimum 90% of every dollar in scholarships to eligible AZ private school students with verified financial needs within the same school calendar year.

(Please consult your tax advisor) http://www.azdor.gov/TaxCredits/CorporateTuitionTaxCredits.aspx

  • C-Corporations
  • S-Corporations & LLCs that file as an S-Corp
  • Insurance Companies that pay premium taxes in Arizona

 

C-Corporations can allocate up to 100% of their state income tax liabilities for the given tax year as long as it does not exceed the statewide cap for the year. Credit can be carried forward for up to 5 years.

 

S-Corporations, (as defined in section 1361 of the Internal Revenue Code) can either claim the credit against income taxes at the corporate level (income tax reported on an Arizona 120S corporate income tax return) or it may make an irrevocable election to pass the credit through to its individual shareholders.  The S-Corp must make a minimum aggregate contribution of $5,000 within their taxable year in order to pass the credit through to its shareholders and may allocate up to 100% of their state income tax liability for the given tax year, receive a dollar-for-dollar tax credit; then pass the credit on to its shareholders proportionately. If a corporation allocates more than their tax liability, it can be carried forward for up to 5 years. The contribution must be made by the S-corp, not a shareholder, in order to be eligible for the corporate tax credit. Each individual shareholder may claim only a pro-rata share of the credit based on the individual’s ownership interest in the S-corp. (A.R.S. § 43-1089.04).

 

LLCs that are taxed as S-corporations for federal and state purposes are eligible to contribute for tax credit.

 

Insurance companies that pay Arizona state tax liability on their premium income can allocate up to 100% of their premium tax liabilities.

  • A credit is allowed against the premium tax liability incurred by an insurer pursuant to section 20-224, 20-837, 20-1010, 20-1060, or 20-1097.07 for the amount of voluntary cash contributions made by the insurer during the tax year to a school tuition organization.
  • The amount of the credit is the total amount of the insurer’s contributions for the tax year under subsection A of this section that is pre-approved by the department of revenue pursuant to section 43-1183, subsection D.

 

(Use tax form 335 to claim your credit)

No. Corporations can only claim their contribution in the tax year in which the contribution is made (plus, five years for carry forward purposes). The law allows your corporation to allocate your tax liability to a School Tuition Organization (STO) such as STO4KIDZ, designating a private school, not a specific student. However, if there are not enough eligible students at your designated school, the money will be awarded among eligible students attending other qualifying private schools in Arizona.

  • K-12 Students with a demonstrated financial need
  • Pre-K–12 Students with Disabilities
  • Kindergarten Students with a demonstrated financial need
  • US Armed Forces Dependents
  • Foster Children
  • Students Transferring from a Public or Charter School with a demonstrated financial need
  • Previous Corporate or Switcher Scholarship Recipients with a demonstrated financial need

First:

  1. Determine your business tax liability for the current year. You can allocate the total corporate tax liability amount. To participate, the company does not have to be based in Arizona, provided it pays Arizona tax liability.
  2. Complete and submit your non-binding contribution pledge form Online , or call Miriam at 480.823.8052 for assistance.

     

Then:

  1. STO4KIDZ will submit a Tax Credit Contribution Approval Request on behalf of your company to the Arizona Department of Revenue (ADOR).

  2. The request will be approved if the state cap has not yet been met. If the cap has been met, ADOR will  create a waitlist based on the order the requests are received.

  3. STO4KIDZ will notify you the same day ADOR inform us of the approval. Corporation has 20 calendar days to fund STO4KIDZ in order to keep the tax credit.
  4. Once STO4KIDZ receives the contribution funds ADOR will be notified and STO4KIDZ will provide the company a receipt to claim the tax credit.

  5. When filing the company’s taxes, you will take the corporate income tax credit on the Standard 120 Form and file a 335 Form, listing the credit amount (335-S / Instruction or 335/ Instruction.)
  6. STO4KIDZ awards tuition scholarships to qualifying students.

 

If you have questions, please contact Miriam Antolik at 480.823.8052  -  602.698.8855 OR  Email us.             

 

We sincerely welcome and appreciate your support and participation in this most worthwhile program at no out-of-pocket cost to you.

Student Application

STO4KIDZ is a School Tuition Organization (STO) which falls under Section 501(c)(3) of the Internal Revenue Code. We provide scholarships to qualifying students attending qualified private schools in Arizona through tax credit contributions made by individuals and corporations. STO4KIDZ is certified by the Arizona Department of Revenue (ADOR) to be in compliance with the Private School Tuition Tax Credit Requirements.

1) Submit your online application for each student per school year between April 15 - June 1, OR November 1 - December 1.

Each application is valid for the entire school year for all 4 award types and must be renewed annually. Parents/guardians must create an account first and submit one application per school year per student. One application considers your child for all four types of scholarship awards: Individual Original, Switcher, Corporate Low Income, and Corporate Disabled/Displaced.

 

2. Begin the enrollment process with the private school of choice. Your student must either be attending a private school or the enrollment is in process.

 

All students can be recommended by donors for the Individual Original Tax Credit.

 

STO4KIDZ awards a minimum 90% of every dollar in scholarship, MONTHLY.

Must apply for each student once per school year. The application is good for each school academic year and it expires at the end of each school year.

Online application opens twice a year. See below for timelines:

  1. April 15 – June1
  2. November 1 – December 1

Yes! A current completed application must be on file for STO4KIDZ to consider a scholarship for your student for the current academic school year. Application expires at the end of each school year; therefore, the parent/guardian must apply for the student(s) every year. We highly take into consideration the recommendations of tax contributors, but it does not guarantee a scholarship and is not the only factor that STO4KIDZ considers when granting an award. However, we will do our best to meet the tuition needs of every student.

  1. Family financial circumstances
  2. Donor recommendations
  3. A brief narrative about the student by parents/guardian
  4. Letters of recommendation for the student (Considering student’s age)
  5. Students with disabilities: Preschool – 12th grade (must provide supporting documents)
  6. Displaced student/Foster child (Must provide supporting documents)

Yes.  As of July 2021, home school children who are switching to attend private school, and students who recently moved to Arizona are also eligible for the tuition tax credit awards.

Home-schooled students, must provide an official copy of the Intent to Home-school and termination letter filed with local governing agency.

Student’s from out of state, must provide an official copy of out of state school enrollment/ withdrawal .

Please contact us for more information.

The ESA statute (A.R.S. §15-2402(B)(3) requires that while a parent has a contract with the ESA program, a student cannot receive both ESA and STO money for the same period.  The ESA program states that a student may utilize an STO scholarship up to the start of ESA funding.  Funding from the ESA program is on a quarterly basis and begins in the quarter following acceptance to the program. Once ESA funding begins, any outstanding STO scholarship money must be refunded by the private school to the STO.

As of July 2021 students that participated in the Empowerment Scholarship Account (ESA) program and did not renew the account or accept the scholarship in order to accept an STO scholarship, must provide a copy of a letter from the ESA stating their ESA account is closed.

However, if your student is eligible to receive tax credit tuition awards through STO4KIDZ (K-12 Arizona private school and has a current, complete application on file, must apply annually) you can solicit Recommended Fund contributions while your student is on ESA.  STO4KIDZ will award your student(s) a MULTI-YEAR Recommended Fund Tuition Aid which can be paid to your private school once you submit your cancellation of ESA contract documentation to STO4KIDZ.  This allows you to solicit funds for a future higher tuition fee, such as high school.

  • The Individual Original and Switcher awards are distributed monthly.
  • The Corporate scholarships are awarded at the beginning of each semester.
  • You will be notified by email each time your student receives an STO award after the tuition award check has been sent to your student’s school.

Please contact us if you are not sure your student qualifies to receive the Switcher Tax Credit or the Corporate financial aid awards.