Are Arizona School Tax Credits deductible on my Federal Return?
Arizona School Tax Credits
January 14, 2014
If you make a donation to a public school or private school you can qualify for a great tax deduction on your Arizona return. However if you recommend a student to benefit from it then you cannot claim a Charitable deduction on your Federal return.
Here are the rules from the IRS website.
Contributions to Individuals
You cannot deduct contributions to specific individuals, including the following.
Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members.
Contributions to individuals who are needy or worthy. You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person.
Example. You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. However, you cannot deduct contributions earmarked for relief of a particular individual or family.
Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses.
Expenses you paid for another person who provided services to a qualified organization.
Example. Your son does missionary work. You pay his expenses. You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services.
Payments to a hospital that are for a specific patient's care or for services for a specific patient. You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization.