Arizona Form 323 is used by individuals to claim a nonrefundable tax credit for contributions made to a certified School Tuition Organization (STO). Taxpayers claiming this credit must also complete Arizona Form 301, Nonrefundable Individual Tax Credits and Recapture, and file both forms with their Arizona income tax return.
Available Credit Carryover
Taxpayers may carry forward any unused School Tuition Organization credit that cannot be used because of Arizona tax liability limitations. Unused credit carryovers from prior years are reported in the carryover section of Form 323 and may generally be carried forward for up to five consecutive taxable years.
Excess Contributions (Part 4, Lines 23–25)
Part 4 is used to determine whether contributions made during the taxable year exceed the maximum credit allowed under Arizona law.
Line 23: Enter the total contributions made during the taxable year. Married taxpayers filing separately generally enter one-half of the total contributions reported in Part 1.
Line 24: Enter the maximum credit allowed for the taxable year based on filing status and the statutory limitation in effect for that year.
Line 25: Subtract Line 24 from Line 23. If the result is greater than zero, the excess contribution amount may be used to determine eligibility for the Credit for Contributions to Certified School Tuition Organizations on Arizona Form 348, subject to the requirements and limitations applicable to that credit.
Important Information
- AZDOR describes the credit as a nonrefundable credit for cash contributions to a private school tuition organization
Source:
Form 323: Credit for Contributions to Private School Tuition Organizations
Disclaimer: Always verify details with the official Arizona Department of Revenue (AZDOR) forms and instructions. Tax rules may change annually, and individual circumstances may require professional advice from a CPA or tax attorney.