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2021 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 2021, 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 $608 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 column.      that file a joint return, the maximum amount of credit that a 
                                                                   taxpayer can establish for the current taxable year is $1,214.  In 
NOTE:      You  must also complete Arizona Form 301,               most cases, for  married taxpayers  who  file separate returns, 
Nonrefundable Individual Tax Credits and Recapture, and 
                                                                   each spouse  may claim only  one-half  (½)  of the credit that 
include Forms 301 and 348 with your tax return to claim this 
                                                                   would have been allowed on a joint return.  
credit. 
                                                                   NOTE:  The maximum amount of credit established for the 
Notice to All Taxpayers                                            current taxable year  does   not  include  any unused  valid 
                                                                   carryover amount(s) from prior taxable years.  Because this is 
NOTE: To claim a current year’s credit on Form 348, you must       a nonrefundable credit, the total amount of  available credit 
first claim  the maximum  current year’s  credit allowed  on       [current year plus any valid carryover amount(s)] that a 
Arizona Form 323, Credit for Contributions to Private School       taxpayer may use for the taxable year cannot be greater than 
Tuition Organizations.  The amount of credit you must claim on     the tax liability shown.   
Form 323 depends on your filing status.  See Form 323 for these 
amounts.                                                           A cash contribution for which a credit is claimed that is made 
If you have a carryover amount from a credit claimed  on           on or before the fifteenth day of the fourth month following the 
Form 348 from prior tax years, you do not have to claim the        close of the taxable year may be applied to either the current or 
maximum allowable credit on Form 323 to  only  use a               preceding taxable year and is considered to have been made on 
carryover amount on Form 348.  If you are claiming only a          the last day of that taxable year. 
carryover amount on Form 348, and are  not  claiming any           FOR CALENDAR YEAR  FILERS:               Credit  eligible  cash 
current year’s credit on Form 323, submit only Forms 301           contributions made to a certified STO from January 1, 2022, to 
and 348.                                                           April 18, 2022, may be claimed as a tax credit on either the 
For an example of how to calculate the current year credit  and    2021 or 2022 Arizona income tax return. 
carryover credit, if any, see the last page of these instructions. If you claim this credit in 2021 for a contribution made from 
                                                                   January  1,  2022,  to  April  18,  2022,  you  must  make  an 
Arizona Form 348 Credit Carryover Amount from                      adjustment on your 2022 Arizona Form 140 Schedule A, Form 
Prior Tax Years                                                    140PY Schedule A(PY) or A(PYN), or Form 140NR Schedule 
If you claimed an allowable credit on Form 348 on your 2016        A(NR). 
through 2020 tax returns and your tax liability was less than      If the allowable credit is more than your tax or if you have no 
your  allowable  credit,  you  may  have a carryover amount        tax, you may carry the unused credit forward for up to the next 
available.                                                         five consecutive taxable years’ income tax liability. 
You may use the available credit carryover amount to reduce 
                                                                       
your 2021 tax liability even if you do not claim a credit on Form 
                                                                                                        
323 for 2021.   



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                                                                                                                 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 2021 
and/or 2022, 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, 2021 through 
certified to receive contributions for the individual income tax       December 31, 2021  
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 a 2021 credit on Form 323.   
this credit, it does not matter if you qualify to take the dependent 
deduction.                                                             Lines 2, 3 and 4  
                                                                       Enter the following for each certified STO to which you made 
NOTE: Your contribution will also not qualify if you designate 
                                                                       contributions from January 1, 2021 through December 31, 2021, 
a student beneficiary as a condition of your contribution to the 
                                                                       and for which you are claiming a current year’s credit on your 
STO.  Additionally, the tax credit is not allowed if you agree 
                                                                       return: 
with another person to designate each other’s contributions to 
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/2021); 
                                                                       • 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, 2021, through December 31, 2021.  
following: 
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                                                                                                             Arizona Form 348 

NOTE:    Do not include those  cash  contributions  that you       Line 15 - Maximum Allowable Credit on Form 348 
made from January 1, 2021 through April 15, 2021, for which        • Single taxpayers and taxpayers filing as heads of household 
you or your spouse claimed a credit on the 2020 tax return.          enter $608.  
If  you  made cash contributions to  more  than three  certified   • All married taxpayers enter $1,214. 
STOs, complete the Continuation Sheet on page 3, and include       Line 16 - Current Year’s Credit to Claim on Form 348 
it with the credit form.                                           Enter the smaller of line 14 or line 15.  If you are married filing 
Line 5                                                             a separate return but could have filed a joint return, you may 
Enter  the amount  from line 5h of the Continuation Sheet;         take only one-half (½) of the total credit that would have been 
otherwise enter “0”.                                               allowed on a joint return, up to a maximum of $608.  In this 
Line 6                                                             case, enter one-half (½) of the smaller of line 14 or line 15. 
Add lines 2 through 5, column (e) and enter the total.             Part 3 - Available Credit Carryover  
B.  Cash contributions made January 1,  2022                       NOTE:  Arizona law requires that a taxpayer must claim the 
through April 18, 2022, for which you or your spouse               maximum credit amount allowed on Arizona Form 323 before 
are claiming a credit on the 2021 tax return                       claiming a credit for excess contributions on Form 348.  
NOTE:  If you are married and filing separate returns, be sure     However, you do not have to claim a current year credit on 
to include all cash contributions made by you and your spouse.     Form 323 to only claim a credit carryover amount from prior 
You must also include all STOs to which you and your spouse,       taxable years on Form 348. 

if married, made contributions to and for which you or your        Lines 17 through 22  
spouse are claiming a 2021 credit on Form 323.   
                                                                   Complete lines 17 through 22 to figure your available credit 
Lines, 7, 8, and 9                                                 carryover from taxable years 2016 through 2020.  Complete 
Enter the following for each certified STO to which you made       lines 17 through 22 if you claimed this credit on a return for one 
contributions from January 1, 2022 through April 18, 2022 for      of these years and the credit was more than your tax. 
which you are claiming a current year’s credit on your return:     NOTE:  You may carry over only that portion of the credit that 
• Column (a):  the date  you  made the contribution                you do not apply to tax.   You cannot carry over any  
  (MM/DD/2022)                                                     amount that you gave that was more than the amount allowed 
• Column (b):  name of the certified STO;                          as a credit.  See the example at the end of these instructions. 
• Column (c):  street address of the certified STO; 
                                                                   • In column (b), enter the credit originally computed for that 
• Column (d):  location (city and state) of the certified STO;       taxable year listed in column (a).  
  and 
                                                                   • In column (c), enter the amount of the credit from that 
• Column (e):  the amount of cash contributions made from            taxable year which you have already used.  
  January 1, 2022 through April 18, 2022.                          • In column (d), subtract the amount in column (c) from 
If  you  made cash contributions to  more than  three  certified     column (b) and enter the difference. 
STOs, complete the Continuation Sheet on page 3 of the form,       • Add the amounts on lines 17 through 21 in column (d).  
and include it with the credit form. 
                                                                   Enter the total on line 22, column (d).   
Line 10  
Enter the amount from page 3, line 10h, of the Continuation        Part 4 - Total Available Credit  
Sheet; otherwise enter “0”.                                        Line 23  
Line 11                                                            Enter the amount from Part 2, line 16.  Also, enter this amount 
Add lines 7 through 10, column (e).  Enter the total.              on Form 301, Part 1, line 23, column (a). 
Line 12                                                            Line 24  
Add lines 6 and 11.  Enter the total.                              Enter the amount from Part 3, line 22, column (d).  Also, enter 
                                                                   this amount on Form 301, Part 1, line 23, column (b).   
Line 13  -Maximum Credit Claimed on Form 323 
                                                                   Line 25  
• Single taxpayers and taxpayers filing as heads of household 
  enter $611.                                                      Add line 23 and line 24.  Enter the total.  Also, enter this 
• All married taxpayers enter $1,221.                              amount on Form 301, Part 1, line 23, column (c). 
Line 14 - Potential Credit                                         REMINDER:   To claim this credit, you     must first claim the 
Subtract line 13 from line 12, and enter the difference.           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.  

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                                                                        Arizona Form 348 
EXAMPLE:  During 2021, Mary, a single person, gave $1400 
to a certified STO.  Mary’s tax liability for 2021 is $400.  Mary 
claimed the  maximum credit amount of  $611  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 2021, 
$608 for single or head or household; or $1,214 for married 
filing joint.)   
For 2021, Mary would compute her     available current year’s 
credit for Form 348 as follows: 
 2021 total contributions made                         $ 1,400 
 Credit claimed on Form 323 for tax year 2021          ($   611) 
 Contributions eligible to  use for computing Form       
 348 credit                                            $   789 
 Maximum credit on Form 348 that Mary may claim        $   608 
 Contributions exceeding the allowable credit.  Mary 
                                                         
 may not use the amount of the gift, $181, which was     
 more than the allowable $608  credit ($789  minus       
 $608) to figure her credit on Form 348.               $   181 
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  $608  carryover on Form 348 for the next 
taxable year.  
Mary  will compute her     2021  carryover credit      amount as 
follows: 
 Current Year’s Credit                                          $ 608 
 Mary’s 2021 tax liability                  $  400      
 Tax credit used – from Arizona Form 323   ($  400)     
 Balance of tax                             $       0   
 Amount of current year credit used from 
 Form 348 to off-set taxes                             $     0 
 Amount of current year credit from Form 
 348 available to carryover to next year.                      $ 608 
 
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