PDF document
- 1 -

Enlarge image
2022 Credit for Contributions to  
Certified School Tuition Organizations - Individuals                                                      Arizona Form 
(For contributions that exceed the maximum allowable credit on Arizona Form 323)                                 348 

For information or help, call one of the numbers listed:           General Instructions 
Phoenix                                (602) 255-3381
                                                                   Arizona law provides an individual income tax credit for the 
From area codes 520 and 928, toll-free (800) 352-4090
                                                                   voluntary cash contributions made to a certified School Tuition 
Tax forms, instructions, and other tax information                 Organization (STO) in order to improve education by raising 
If you need tax forms, instructions, and other tax information,    tuition scholarships for children in Arizona. 
go to the department’s website at www.azdor.gov.                   This credit is available only to individuals.  Corporations may 
Income Tax Procedures and Rulings                                  not claim this credit.  A partnership  may not pass the credit 
These instructions  may refer  to the department’s income tax      through to its partners.   An  S Corporation  may not pass the 
procedures and rulings for more information.  To view or print     credit through to its shareholders. 
these,  go to our  website  select Reports, Statistics and Legal   The amount of current year’s contributions that may be claimed 
Research from the main menu, then click on Legal Research          on Form 348 is computed after the maximum credit is claimed 
and select a Document Type and Category from the drop down         on Form 323 and is based on the excess amount of contributions 
menus.                                                             shown on Form 323, Part 4, line 25.   
Publications                                                       For 2022, the maximum amount of credit on Form 348 that a 
To view or print the department’s publications, go to our          taxpayer can establish for the current taxable year is $620 for 
website select Reports, Statistics and Legal Research from the     single taxpayers or heads of household.  For married taxpayers 
main  menu then click on Publications  in the left-hand  side      that file a joint return, the maximum amount of credit that a 
column.                                                            taxpayer can establish for the current taxable year is $1,238.  In 
                                                                   most cases, for  married taxpayers  who  file separate returns, 
NOTE:      You  must also complete Arizona Form 301, 
                                                                   each spouse  may  claim only one-half  (½)  of the credit that 
Nonrefundable Individual Tax Credits and Recapture, and 
                                                                   would have been allowed on a joint return.  
include Forms 301 and 348 with your tax return to claim this 
credit.                                                            NOTE:  The maximum amount of credit established for the 
                                                                   current taxable year  does   not  include  any unused  valid 
Notice to All Taxpayers                                            carryover amount(s) from prior taxable years.  Because this is 
                                                                   a nonrefundable credit, the total amount of  available credit 
NOTE: To claim a current year’s credit on Form 348, you must       [current year plus any valid carryover amount(s)] that a 
first claim  the maximum  current year’s  credit allowed  on       taxpayer may use for the taxable year cannot be greater than 
Arizona Form 323, Credit for Contributions to Private School       the tax liability shown.   
Tuition Organizations.  The amount of credit you must claim on 
Form 323 depends on your filing status.  See Form 323 for these    A cash contribution for which a credit is claimed that is made 
amounts.                                                           on or before the fifteenth day of the fourth month following the 
If you have a carryover amount from a credit claimed  on           close of the taxable year may be applied to either the current or 
Form 348 from prior tax years, you do not have to claim the        preceding taxable year and is considered to have been made on 
maximum allowable credit on Form 323 to  only  use a               the last day of that taxable year. 
carryover amount on Form 348.  If you are claiming only a          FOR CALENDAR YEAR  FILERS:            Credit  eligible  cash 
carryover amount on Form 348, and are  not  claiming any           contributions made to a certified STO from January 1, 2023 to 
current year’s credit on Form 323, submit only Forms 301           April 18, 2023 may be claimed as a tax credit on either the 2022 
and 348.                                                           or 2023 Arizona income tax return. 
For an example of how to calculate the current year credit  and    If you claim this credit in 2022 for a contribution made from 
carryover credit, if any, see the last page of these instructions. January 1, 2023 to April 18, 2023 you must make an adjustment 
                                                                   on your  2023  Arizona Form 140 Schedule  A, Form 140PY 
Arizona Form 348 Credit Carryover Amount from                      Schedule A(PY) or A(PYN), or Form 140NR Schedule A(NR). 
Prior Tax Years 
                                                                   If the allowable credit is more than your tax or if you have no 
If you claimed an allowable credit on Form 348 on your 2017        tax, you may carry the unused credit forward for up to the next 
through 2021 tax returns and your tax liability was less than      five consecutive taxable years’ income tax liability. 
your  allowable  credit,  you  may  have a carryover amount 
available. 
You may use the available credit carryover amount to reduce 
your 2022 tax liability even if you do not claim a credit on Form 
323 for 2022.   



- 2 -

Enlarge image
                                                                                                                Arizona Form 348 
A  certified  STO  is an organization that  meets  all  of the         • the name and address of the STO;
following.                                                             • the name of the taxpayer;
• The organization is tax exempt under Section 501(c)(3) of            • the amount paid; and
  the Internal Revenue Code.                                           • the date paid.
• The organization allocates at least 90% of its annual revenue        Please keep this receipt  with  your tax records.   For more
  for educational scholarships or tuition grants.                      information on the school tax  credits, see the department’s
• The organization makes its scholarships or grants available          publication, Pub 707, School Tax Credits.
  to students of more than one qualified school.                       NOTE: You may be able to make credit eligible contributions 
A “qualified school” means a preschool that offers services to         to a certified STO through payroll withholding.  Check with 
students  with disabilities,  nongovernmental primary or a             your employer to see if your employer has agreed to withhold 
secondary school that is located in Arizona.  The school cannot        contributions that qualify for this credit from your pay. 
discriminate on the basis of race, color, handicap, familial 
status, or national origin and requires all teaching staff and         Line-by-Line Instructions 
personnel that have unsupervised contact with students to be 
fingerprinted.                                                         Enter your name and Social Security Number (SSN) as shown 
                                                                       on Arizona Forms 140, 140PY, 140NR, or 140X. 
A  qualified  school  does  not  include  a  charter  school  or 
programs operated by a charter school.  The primary school             All returns,  statements, and  other documents filed  with the 
must begin with kindergarten and the secondary school must             department require a taxpayer identification  number (TIN).  
end with grade 12.                                                     The TIN for an individual is the taxpayer's SSN or an Internal 
                                                                       Revenue Service (IRS) individual taxpayer identification 
In the case of a preschool that offers services to students with       number (ITIN).  Taxpayers that fail to include  their 
disabilities, a “student with disabilities” is a student who has       identification number may be subject to a penalty. 
any of the following conditions: 
•  hearing impairment or visual impairment;                            NOTE:  Complete Parts 1, 2, 3, and 4 if you are claiming a 
•  developmental delay;                                                new credit for the current tax year.  
•  preschool severe delay; or                                          If you are only claiming a carryover amount available from a 
•  speech and/or language impairment.                                  previous credit, complete Parts 3 and 4  

NOTE:  The Arizona Department of Revenue is required to                Part 1 – Eligibility 
certify  STOs.  The  department maintains  a  list  of currently 
certified STOs on its website at www.azdor.gov.                        Lines 1a through 1c 
                                                                       For lines 1a through 1c, answer the questions and follow the 
To qualify for the credit, all contributions must be made to a         instructions on the form.   
certified STO.  To determine if your contributions made in 2022 
and/or 2023 qualify for this credit, you should verify that the        Part 2 - Current Year’s Credit 
STO you made a contribution to is certified.  For a list of STOs       A. Cash contributions made January 1, 2022 through
certified to receive contributions for the individual income tax       December 31, 2022
credit, see the department’s website. 
                                                                       NOTE:  If you are married and filing separate returns, be sure 
Your cash contribution to the STO will not qualify for the credit      to include all cash contributions made by you and your spouse. 
if you designate the contribution for the direct benefit of your       You must also include all STOs to which you and your spouse, 
dependent.  For Arizona purposes, “dependent” has the same             if married, made contributions to and for which you or your 
meaning provided in section § 152 of the IRC.  For purpose of          spouse are claiming on a 2022 credit on Form 323.    
this credit, it does not matter if you qualify to take the dependent 
deduction.                                                             Lines 2, 3 and 4 
NOTE: Your contribution will also not qualify if you designate         Enter the following for each certified STO to which you made 
a student beneficiary as a condition of your contribution to the       contributions from January 1, 2022 through December 31, 2022 
STO.  Additionally, the tax credit is not allowed if you agree         for which you  are claiming a current  year’s credit  on your 
with another person to designate each other’s contributions to         return: 
the  STO  for the  direct benefit of each other’s dependent, a         • Column (a):   the date  you  made the contribution
practice commonly known as swapping.                                     (MM/DD/2022);
                                                                       • Column (b):  name of the certified STO;
You cannot claim both a tax credit and itemized deduction for          • Column (c):  street address of the certified STO;
the amount of contributions made to a certified STO for which 
                                                                       • Column (d):  location (city and state) of the certified STO;
you are claiming an Arizona tax credit. 
                                                                         and
Before claiming this credit, make sure the STO issues you a            • Column (e):    the  amount of  cash  contributions made  from
receipt for the contributions.  The receipt should show all of the       January 1, 2022 through December 31, 2022.
following: 
                                                                     2 



- 3 -

Enlarge image
                                                                                                              Arizona Form 348 
NOTE:   Do not include those  cash  contributions  that you        Line 10  
made from January 1, 2022 through April 15, 2022 for which         Enter the amount from page 3, line 10h, of the Continuation 
you or your spouse claimed a credit on the 2021 tax return.        Sheet; otherwise enter “0”. 
If  you  made cash contributions to  more  than three  certified   Line 11  
STOs, complete the Continuation Sheet on page 3, and include       Add lines 7 through 10, column (e).  Enter the total. 
it with the credit form.                                           Line 12  
What if I Made More than Ten (10) Contributions                    Add lines 6 and 11.  Enter the total. 
to the Same STO?                                                   Line 13  -Maximum Credit Claimed on Form 323 
If you made more than ten (10) re-occurring monthly donations      • Single taxpayers and taxpayers filing as heads of household 
(or used paycheck deductions) for contributions to the same          enter $623.   
STO, the department will permit the netting/summarizing of the     • All married taxpayers enter $1,245 
contributions  made to the same  STO  and  provision of  one 
                                                                   Line 14 - Potential Credit 
common date (for example 12/31/22).  Enter the total amount 
of contributions made in column (e).                               Subtract line 13 from line 12, and enter the difference. 
                                                                   Line 15 - Maximum Allowable Credit on Form 348 
Line 5  
                                                                   • Single taxpayers and taxpayers filing as heads of household 
Enter the amount  from line 5h of the Continuation Sheet;            enter $620.  
otherwise enter “0”. 
                                                                   • All married taxpayers enter $1,238. 
Line 6 
                                                                   Line 16 - Current Year’s Credit to Claim on Form 348 
Add lines 2 through 5, column (e) and enter the total. 
                                                                   Enter the smaller of line 14 or line 15.  If you are married filing 
B.  Cash contributions made January 1,  2023                       a separate return but could have filed a joint return, you may 
through April 18, 2023 for which you or your spouse                take only one-half (½) of the total credit that would have been 
are claiming a credit on the 2022 tax return                       allowed on a joint return, up to a maximum of $620.  In this 
NOTE:  If you are married and filing separate returns, be sure     case, enter one-half (½) of the smaller of line 14 or line 15. 
to include all cash contributions made by you and your spouse.     Part 3 - Available Credit Carryover  
You must also include all STOs to which you and your spouse, 
if married, made contributions to and for which you or your        NOTE:  Arizona law requires that a taxpayer must claim the 
                                                                   maximum credit amount allowed on Arizona Form 323 before 
spouse are claiming a 2022 credit on Form 323.   
                                                                   claiming a credit for excess contributions on Form 348.  
Lines, 7, 8, and 9                                                 However, you do not have to claim a current year credit on 
Enter the following for each certified STO to which you made       Form 323 to only claim a credit carryover amount from prior 
contributions from January 1, 2023 through April 18, 2023 for      taxable years on Form 348. 
which you are claiming a current year’s credit on your return:   
•  Column (a):   the date  you  made the contribution              Lines 17 through 22  
   (MM/DD/2023)                                                    Complete lines 17 through 22 to figure your available credit 
•  Column (b):  name of the certified STO;                         carryover from taxable years 2017 through 2021.  Complete 
                                                                   lines 17 through 22 if you claimed this credit on a return for one 
•  Column (c):  street address of the certified STO; 
                                                                   of these years and the credit was more than your tax. 
•  Column (d):  location (city and state) of the certified STO; 
   and                                                             NOTE:  You may carry over only that portion of the credit that 
                                                                   you do not apply to tax. You cannot carry over any  
•  Column (e):  the amount of cash contributions made from 
                                                                   amount that you gave that was more than the amount allowed 
   January 1, 2023 through April 18, 2023. 
                                                                   as a credit.  See the example at the end of these instructions. 
If  you  made cash contributions to  more than  three  certified 
STOs, complete the Continuation Sheet on page 3 of the form,       • In column (b), enter the credit originally computed for that 
and include it with the credit form.                                 taxable year listed in column (a).  
                                                                   •
What if I Made More than Ten (10) Contributions                      In column (c),  enter the amount of the credit  from that 
                                                                     taxable year which you have already used.  
to the Same STO?  If you made more than ten (10) re-occurring monthly donations        In column (d), subtract the amount in column (c) from 
                                                                     column (b) and enter the difference. 
(or used paycheck deductions) for contributions to the same 
STO, the department will permit the netting/summarizing of the     • Add the amounts on lines 17 through 21 in column (d).  
contributions  made to the same  STO  and  provision of  one        Enter the total on line 22, column (d).   
common date (for example 04/18/23).  Enter the total amount 
of contributions made in column (e).                                                            

                                                                 3 



- 4 -

Enlarge image
                                                                                                              Arizona Form 348 
Part 4 - Total Available Credit                                     Mary  will compute her     2022  carryover credit  amount as 
Line 23                                                             follows: 
Enter the amount from Part 2, line 16.  Also, enter this amount      Current Year’s Credit                                          $ 620 
on Form 301, Part 1, line 21, column (a).                            Mary’s 2022 tax liability                  $  400     
Line 24                                                              Tax credit used – from Arizona Form 323   ($  400)    
Enter the amount from Part 3, line 22, column (d).  Also, enter      Balance of tax                             $       0  
this amount on Form 301, Part 1, line 21, column (b).                Amount of current year credit used from 
Line 25                                                              Form 348 to off-set taxes                            $     0 
Add line 23 and line 24.  Enter the total.  Also, enter this         Amount of current year credit from Form 
amount on Form 301, Part 1, line 21, column (c).                     348 available to carryover to next year.                      $ 620 
                                                                     
REMINDER:        To claim this credit, you must first claim the 
maximum credit allowed on  Arizona  Form 323,        Credit for 
Contributions to Private School Tuition Organizations.   
The amount of credit you must claim on Form 323 depends on 
your filing status.  See Form 323 for these amounts.  
EXAMPLE:  During 2022, Mary, a single person, gave $1400 
to a certified STO.  Mary’s tax liability for 2022 is $400.  Mary 
claimed the  maximum  credit amount of  $623  allowed on 
Arizona Form 323.   
Since Mary  made a contribution  that totaled  more than the 
allowable credit on Arizona form 323,  she may claim a credit, 
on Form 348, up to the maximum amount allowed (for 2022, 
$620 for single or head or household; or $1,238 for married 
filing joint.)   
For 2022, Mary would compute her    available current year’s 
credit for Form 348 as follows: 
2022 total contributions made                         $ 1,400 
Credit claimed on Form 323 for tax year 2022         ($   623) 
Contributions eligible to  use for computing Form         
348 credit                                            $   777 
Maximum credit on Form 348 that Mary may claim        $   620 
Contributions exceeding the allowable credit.  Mary 
                                                          
may not use the amount of the gift, $157, which was       
more than the allowable $620  credit ($777  minus         
$620) to figure her credit on Form 348.               $   157 
Once Mary computes her credit, she must then determine how 
much of that credit may be applied to the current year’s tax and 
how much, if any, may be carried over to a future year.   
In this case, Mary has already applied a credit (from Arizona 
Form 323) against her total tax liability of $400.  Therefore, 
Mary  will have a  $620  carryover on Form 348 for the next 
taxable year.  

                                                                  4 






PDF file checksum: 2738036060

(Plugin #1/9.12/13.0)