The Arizona Christian School Tuition Organization, Inc (ACSTO) was incorporated in 1998 for the sole purpose of implementing the private school tuition tax credit law passed and signed into law in 1997 as A. R. S. Section 43-1089. ACSTO is a tax exempt organization pursuant to federal tax law, Section 501(c)(3).

The Arizona Private School Tuition Tax Credit Law, A. R. S. Section 43-1089, allows a married couple filing jointly to make a donation to the ACSTO up to $1000 in 2007 and receive a dollar-for-dollar tax credit against the taxpayer's Arizona state income tax. A single taxpayer is limited to $500. If the taxpayer has actual Arizona state income tax less than the maximum allowable, the available credit in a given year is limited to the actual tax. The law allows a carry forward for up to five years if a donation is made in excess of the actual state income tax due. Arizona State income tax forms 301 and 323 are used for claiming the credit.

The public school extracurricular activities tax credit of $400 for married couples filing jointly may be taken in addition to the private school tuition tax credit. These donations should be made directly to the public (including charter) school of your choice.
A taxpayer may also be able to claim a federal deduction for the donation. The taxpayer should consult their tax advisor for specific tax advice.

To find out more about the benefits of the private tuition tax credit see the ACSTO web site.