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2022 Credit for Contributions                                                                            Arizona Form 
to Private School Tuition Organizations                                                                         323 
For information or help, call one of the numbers listed:         either the current or preceding taxable year and is considered 
Phoenix                                       (602) 255-3381     to have been made on the last day of that taxable year. 
From area codes 520 and 928, toll-free        (800) 352-4090 
                                                                 FOR CALENDAR YEAR  FILERS:                Credit eligible cash 
Tax forms, instructions, and other tax information               contributions made to a private STO from January 1, 2023 to 
If you need tax forms, instructions, and other tax information,  April 18, 2023 may be used as a tax credit on either the 2022 
go to the department’s website at www.azdor.gov.                 or 2023 Arizona income tax return.  
Income Tax Procedures and Rulings                                If you claim this credit in 2022 for a cash contribution made 
These instructions  may refer  to the department’s income tax    from January 1,  2023  to  April 18,  2023  you must make an 
procedures and rulings for more information.  To view or print   adjustment on your 2023 Arizona Form 140 Schedule A, Form 
these,  go to our  website  select Reports, Statistics and Legal 140PY Schedule A(PY) or A(PYN), or Form 140NR Schedule 
Research from the main menu, then click      on Legal Research   A(NR). 
and select a Document Type and Category from the drop down       If the allowable tax credit is more than your tax or if you have 
menus.                                                           no tax, you may carry the unused credit forward for up to the 
Publications                                                     next 5 consecutive taxable years’ income tax liability. 
To view or print the department’s publications, go to our        A  private  STO  is  an  organization  that  meets all  of the 
website select Reports, Statistics and Legal Research from the   following: 
main  menu then click on  Publications in the left-hand  side    •   The organization is tax exempt under Section 501(c)(3) of 
column.                                                              the Internal Revenue Code (IRC). 
                                                                 •   The organization allocates at least 90%  of  its annual 
General Instructions                                                 revenue from contributions to educational scholarships or 
NOTE:  You     must  also  complete  Arizona  Form  301,             tuition grants. 
Nonrefundable Individual Tax Credits and Recapture, and          •   The organization  makes its scholarships or grants 
include Forms 301 and 323 with your tax return to claim this         available to students of more than one qualified school. 
credit.                                                          A “qualified school” means a preschool that offers services to 
Arizona law provides a credit for cash contributions made to a   students  with disabilities,  nongovernmental primary or a 
private  school tuition organization  (STO)  that provides       secondary school  that is located in  Arizona.    The school 
scholarships or grants to qualified schools.                     cannot discriminate on the  basis of race, color, handicap, 
                                                                 familial status, or national origin and requires all teaching staff 
This credit is available only to individuals.  Corporations may 
                                                                 and personnel that have unsupervised contact with students to 
not claim this credit.  A partnership may not pass the credit 
                                                                 be fingerprinted.  A qualified school does not include a charter 
through to its partners.  An S corporation may not pass the 
                                                                 school or programs operated by a charter school.  The primary 
credit through to its shareholders. 
                                                                 school must begin with kindergarten and the secondary school 
The credit is equal to the amount of cash contributed up to the  must end with grade 12. 
maximum amount allowed.  For 2022, the maximum amount 
                                                                 In the case of a preschool that offers services to students with 
of credit that a taxpayer can establish for the current taxable 
                                                                 disabilities, a “student with disabilities” is a student who has 
year is $623 for single taxpayers or heads of household.  For 
                                                                 any of the following conditions: 
married taxpayers that file a joint return, the maximum credit 
                                                                 •
that can be established for the current taxable year is $1,245.      hearing impairment; 
In most cases, for married taxpayers who file separate returns,  •   visual impairment; 
each  spouse  may claim only one-half  (½)  of the credit that   •   developmental delay; 
would have been allowed on a joint return.                       •   preschool severe delay; or 
NOTE:     The maximum amount of credit established for the       •   speech and/or language impairment. 
current taxable year  does   not  include  any unused  valid 
                                                                 NOTE:  The Arizona Department of Revenue is required to 
carryover amount(s) from prior taxable years.  Because this is 
                                                                 certify  STOs.   The  department maintains  a  list  of currently 
a nonrefundable credit, the total amount of available credit 
                                                                 certified STOs on its website at www.azdor.gov.    
[current year plus any valid carryover amount(s)] that a 
taxpayer may use for the taxable year cannot be greater than     To qualify for the credit all cash contributions must be made 
the tax liability shown.                                         to a certified STO.  To determine if  your cash contributions 
                                                                 made in 2022 and/or 2023 qualify for this credit, you should 
A cash contribution for which a credit is claimed and that is 
                                                                 verify that the  STO  you  made a contribution to is certified.  
made on or before the  fifteenth day of the  fourth  month 
                                                                 For a list of STOs certified to receive cash contributions for 
following the close of the taxable  year  may be applied to 
                                                                 the individual income tax credit, see the department’s website.

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                                                                                                          Arizona Form 323 
Your  cash  contribution to the  STO will not qualify for the        and for which you are claiming a current year’s credit on your 
credit if you designate the contribution for the direct benefit of   return. 
your dependent.  For Arizona purposes, “dependent” has the           • Column (a):  the date  you  made the contribution 
same  meaning provided in  section § 152 of the IRC.  For              (MM/DD/2022); 
purpose of this credit, it does not matter if you qualify to take    • Column (b):  the name of the private STO; 
the dependent deduction                                              • Column (c):  street address of the private STO; 
                                                                     •
NOTE: Your  cash  contribution  will also not qualify if you           Column (d):  location (city and state) of the private STO; 
designate a student beneficiary as a condition of your                 and 
                                                                     •
contribution to the STO.  Also, the tax credit is not allowed if       Column (e):  the amount of cash contributions made from 
you agree with another person to  designate  each other’s              January 1, 2022 through December 31, 2022. 
contributions to the STO for the direct benefit of each other’s      NOTE:   Do  not  include those  cash  contributions that you 
dependent, a practice commonly known as swapping.                    made from January 1, 2022 through April 18, 2022 for which 
                                                                     you or your spouse claimed a credit on the 2021 tax return. 
You cannot claim both a tax credit and an itemized deduction 
for the amount of contributions  made to a  private  STO  for        If  you  made cash contributions to more  than three  private 
which you are claiming an Arizona tax credit.                        STOs, complete the Continuation Sheet on page 3, and include 
                                                                     it with the credit form. 
Before claiming this credit, make sure the STO issues you a 
receipt for the contribution.  The receipt should show all of the    What if I Made More than Ten (10) Contributions 
following:                                                           to the Same STO?  
• name and address of the STO;                                       If  you  made  more than ten (10) re-occurring monthly 
• name of the taxpayer;                                              donations (or used paycheck deductions) for contributions   to 
• amount paid;                                                       the  same  STO, the department  will permit  the 
• date paid; and                                                     netting/summarizing of  the contributions  made to the same 
• the tax year for which you will claim the contribution.            STO  and  provision of  one common date (for example 
Please keep this receipt  with  your tax records.   For more         12/31/22).   Enter the  total amount of contributions  made in 
information on  school tax credits, see the  department’s            column (e). 
publication, Pub 707, School Tax Credits.   
                                                                     Line 4  
NOTE: You may be able to make credit eligible contributions          Enter the amount  from line 4h of the Continuation Sheet; 
to a  STO  through payroll withholding.  Check with your             otherwise enter “0”. 
employer to see if your employer has agreed to withhold 
                                                                     Line 5  
contributions that qualify for this credit from your pay. 
                                                                     Add lines 1 through 4, column (e) and enter the total. 
Line-by-Line Instructions                                            B. Cash contributions made January 1,  2023 
                                                                     through  April 18,  2023  for  which you or  your 
Enter your name and Social Security Number (SSN) as shown 
                                                                     spouse are claiming  a credit on the  2022  tax 
on Arizona Forms 140, 140PY, 140NR, or 140X.   
                                                                     return 
All returns,  statements, and other documents filed  with the 
department require a taxpayer identification  number (TIN).          NOTE:  If you are married and filing separate returns, be sure to 
The TIN for an individual is the taxpayer's SSN or an Internal       include all cash contributions made by you and your spouse.  
Revenue Service (IRS) individual taxpayer identification             Lines 6, 7, and 8  
number (ITIN).  Taxpayers that fail to include their                 Enter the following for each private STO to which you made 
identification number may be subject to a penalty.                   contributions from January 1, 2023 through April 18, 2023 for 
NOTE:  Complete Parts 1, 3, and 4, if you are claiming a new         which you are claiming a credit on your 2022 tax return: 
                                                                     •
credit for the current tax year.                                       Column (a):  the date  you  made the contribution 
If you are only claiming a carryover amount available from a           (MM/DD/2023); 
                                                                     •
previous credit, complete Parts 2 and 3.                               Column (b):  name of the private STO; 
                                                                     • Column (c):  street address of the private STO; 
Part 1 - Current Year’s Credit                                       • Column (d):  location (city and state) of the private STO; 
A.   Cash contributions made January 1,  2022                          and 
through December 31, 2022                                            • Column  (e):  the  amount  of  contributions  made  from 
                                                                       January 1, 2023 through April 18, 2023. 
NOTE:  If you are married and filing separate returns, be sure       If  you  made cash contributions to more than three  private 
to include all cash contributions made by you and your spouse.  
                                                                     STOs, complete the Continuation Sheet on page 3 of the form 
Lines 1, 2, and 3                                                    and include it with the credit form. 
Enter the following for each private STO to which you made 
                                                                      
contributions from January 1, 2022 through December 31, 2022 
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Arizona Form 323
What if I Made More than Ten (10) Contributions Part 3 - Total Available Credit
to the Same STO? Line 20
If you made more than ten (10) re-occurring monthly Enter the amount from Part 1, line 13. Also, enter this amount
donations (or used paycheck deductions) for contributions to on Form 301, Part 1, line 9, column (a).
the same STO, the department will permit the Line 21
netting/summarizing of the contributions made to the same
Enter the amount from Part 2, line 19, column (d). Also, enter
STO and provision of one common date (for example
this amount on Form 301, Part 1, line 9, column (b).
4/18/23). Enter the total amount of contributions made in
column (e). Line 22
Add line 20 and line 21. Enter the total. Also, enter this
Line 9
amount on Form 301, Part 1, line 9, column (c).
Enter the amount from page 3, line 9h, of the Continuation
Sheet; otherwise enter “0”. Part 4 - Do I Have Excess Contributions Available
Line 10 to Claim on Arizona Form 348?
Add lines 6 through 9, column (e). Enter the total. Complete Part 4, lines 23 through 25, to determine if you have
excess contributions available to claim a credit on Arizona
Line 11 Form 348, Contributions to Certified School Tuition
Add lines 5 and 10. Enter the total. Organization – Individuals.
Line 12 Line 23
Single taxpayers and taxpayers filing as head of household, Enter the total amount of contributions made during the
enter $623. Married taxpayers enter $1,245. taxable year:
Line 13 - Current Year’s Credit • Single taxpayers, heads of household and married
Enter the smaller of line 11 or line 12. If you are married taxpayers filing a joint return; enter the total amount from
filing a separate return, but you could have filed a joint return, Part 1, line 11.
you may take only one-half (½) of the total credit that you and • Married taxpayers filing separate; enter one-half (½) of
your spouse would have been allowed to take on a joint return, the total amount from Part 1, line 11.
up to a maximum of $623 each. In this case, enter one-half
Line 24 -
(½) of the smaller of line 11 or line 12.
Enter the maximum credit allowed on Form 323:
NOTE: If you made contributions that total more than the • Single taxpayers and heads of household; enter $623.
allowable current year’s credit on Form 323, you may claim a
credit on Arizona Form 348 for some or all of the • Married taxpayers filing joint; enter $1,245.
contributions that exceed the maximum allowable amount. To • Married taxpayers filing separate; enter $623.
determine if you have excess contributions available to claim
a credit on Form 348, complete Part 4 of Form 323. For Line 25 – Excess Contributions:
additional information see Form 348. Subtract line 24 from line 23. Enter the difference. If less
than zero, enter “0”.
Part 2 - Available Credit Carryover
If the amount on line 25 is more than zero, you have excess
Lines 14 through 19 contributions available and may claim a credit on Form 348
Complete lines 14 through 19 to figure your available credit for those contributions.
carryover from taxable years 2017 through 2021. Complete If the amount on line 25 is “0,” you do not have any excess
lines 14 through 19 if you claimed this credit on a return for contributions available to claim on Form 348.
one of these years and the credit was more than your tax.
EXAMPLE: During 2022, Mary, a single person, gave
NOTE: You may carry over only that portion of the credit $1,400 to a private STO. For 2022, Mary is allowed a
that you do not apply to tax. You cannot carry over any maximum credit on Form 323 of $623. Mary’s 2022 tax
amount that you gave that was more than the amount allowed liability is $400. Mary may apply $400 of the $623 credit
as a credit. See the example at the end of these instructions. claimed on Form 323 against her 2022 tax liability. Mary may
carryover the unused credit of $223 to her 2023 income tax
• In column (b) enter the credit originally computed for return. Mary may not claim a credit on Form 323 for the $777
that taxable year listed in column (a). gift that was more than the allowable credit ($1,400 minus
• In column (c) enter the amount of the credit from that allowable credit of $623).
taxable year which you have already used.
However, Mary may claim a credit on Arizona Form 348 for
• Subtract the amount in column (c) from column (b) and
the contribution made to the private STO that was more than
enter the difference in column (d).
the $623 allowable credit. The credit Mary may claim on
• Add the amounts entered on lines 14 through 18 in
Form 348 cannot exceed the maximum credit allowed on that
column (d).
form.
Enter the total on line 19, column (d).
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                                                              Arizona Form 323 
To compute that credit, Mary  must complete Form 348  in 
addition to Form 323.   Mary  must also complete  Arizona 
Form 301.   For  2022, Mary  would compute  her available 
credit for Form 348 as follows.  
 2022 total contribution made to STOs               $1,400  
 2022 maximum allowable credit claimed on  Form 323 $   623 
 Mary’s 2022 tax liability             $  400        
 Less: available tax credit - Form 323 $  400        
 Balance of tax                        $      0      
 Carryover available for  2022  from   
 Form 323 ($623 minus $400)            $  223         
 Contribution  available to calculate the allowable 
 credit on Form 348 ($1,400 minus $623).  Mary must 
 complete Arizona Form 348 to figure that credit.   $   777 
 
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