Location:

All About STO’s!

(Scholarship Tuition Organizations)

What is an STO?

Many families don’t realize that a private school education in Arizona can actually be very affordable. Tax credit scholarship programs (or STO’s) give families with limited financial means the ability to enroll their children in the private school that works for their child and meets their unique needs.

Currently, Arizona has FOUR private school tax credit opportunities available. Children may qualify for one, or even all four programs. See the complete list of approved Arizona School Tuition Organizations for individuals and for corporations

Who qualifies

Any K-12 students attending a private school who is approved by an STO for a scholarship.

Frequently Asked Questions

For Parents

There are three! 

1) The Original Individual Tax Credit Law. If your K-12 child is enrolled in a private school in grades K-12 or you have a preschooler with disabilities, guess what – you qualify!

2) Overflow Scholarships funded by the Switcher tax credit law. The qualifications for this one are a little more complicated. Your child is eligible if…

  • Your child attended an Arizona district or charter school for at least 90 days in the prior school year, then transferred to a private school.
  • Your child is currently enrolled in Kindergarten at a private school.
  • You or your partner/spouse are a member of the U.S. Armed Forces and stationed in Arizona under military orders.
  • Your child previously received an Overflow or Corporate scholarship in a prior year, and has attended private school continuously since.
  • Your child  was homeschooled immediately prior to enrolling in a private school.
  • Your child moved to Arizona from out of state immediately prior to enrolling in a private school.
  • Your child participated in the ESA program and did not renew or accept the scholarship in order to accept STO scholarships.


3) Corporate Scholarships

Choose an STO (there are tons – find a list here!) or reach out to the school you’d like to send your child to and ask what STOs they work with. Once you’ve chosen an STO, they will work with you step-by-step through the process. 


*Note: The STO can only award a scholarship if your student is enrolled at the school named on your application. So you’ll need to decide pretty early on in the process where you’d like to send your child.

There are limited funds, and by law, scholarships are not guaranteed. There are some factors (like family financial status) that are required to be considered under state law; Other factors like your story or the recommendations of donors depend on the preferences of the STO you choose. Your STO will help you make the best application possible.

This will depend on the requirements of your chosen STO. If your new school isn’t one your STO partners with, you will lose the remainder of your scholarship through that STO.

Unfortunately, no. It’s either or. But you can choose to end your ESA contract mid-year and then apply for an STO scholarship. 

To students! They are non-transferable, even to other children in your family.

Here’s how! 

  1. Tell friends and family you wish to support you which STO you are using and how to contribute. You can do this with a simple text – or a fun postcard (try one of our templates here!). 
    1. Tell them they can direct their contribution to your STO on Form 323
    2. Give them the contact information/website for your STO so they can contact them and designate your child as the recipient of their credit.

Frequently Asked Questions

FOR DONORS & TAXPAYERS

There are several options! (Source: AZ.gov)

First, you can do it for tax credit – here are some ways: 

  1. Single or Married Filers: Credit for Contributions to Private School Tuition Organizations (Original Individual Income Tax Credit) This tax credit is claimed on Form 323. For tax year 2021, the maximum credit allowed is $611 for single, heads of household and married filing separate filers and $1,221 for married filing joint filers. For tax year 2022, the maximum credit allowed is $623 for single, heads of household and married filing separate filers and $1,245 for married filing joint filers.
  2. Single or Married Filers: Credit for Contributions to Certified School Tuition Organizations (Switcher Individual Income Tax Credit) This tax credit is claimed on Form 348 and is available to individual taxpayers who donate the maximum amount allowed under the Credit for Contributions to Private School Tuition Organizations (Form 323) and make an additional donation to a Certified School Tuition Organization. For tax year 2021, the maximum credit allowed is $608 for single, heads of household and married filing separate filers and $1,214 for married filing joint filers. For tax year 2022, the maximum credit allowed is $620 for single, heads of household and married filing separate filers and $1,238 for married filing joint filers.
  3. Business Owners/Shareholders: Credit for Business Contributions by an S Corporation to School Tuition Organizations This tax credit is claimed on Form 335-I is available for individual shareholders to claim their pro rata amount of contributions made by an S corporation to a Certified School Tuition Organization.
  4. Business Owners/Shareholders: Credit for Business Contributions by an S Corporation to School Tuition Organizations for Displaced Student or Students with Disabilities This tax credit is claimed on Form 341-I is available for individual shareholders to claim their pro rata amount of contributions made by an S corporation to a Certified School Tuition Organization. 

Or, donate directly to an STO that matches your values and goals (there are tons – find a list here!).

Here’s how! 

  1. Find out from the family you wish to support which STO they are using. Then direct your contribution to that STO on your tax form. 
  2. Contact that STO (many will have a form on their website, or you can call them) and let them know that you are designating your donation for X student. 

*Note: STO’s aren’t legally bound to adhere to your designation, but they generally do. 

Join us!

You won’t want to miss out on anything at Love Your School!

X