Not getting full AZ Tax credit for private school tuition

[Jaredhaxton]

Hello! I am about done filing my taxes and wanted to give my AZ state tax dollars to a private school as a tax credit but it is only giving me credit for half what I enter to give (I plan to give the payment Friday April 14, 2023).

I am filing MFS and taking standard deduction. My employer paid $2,434 to the state and my TT state refund is showing as $862. As I add amounts to the Contributions to Private School Tuition Organizations, my state refund only goes up by half of the amount I enter. If I put in $200, my state refund only goes up by $100 to $962. This means that I can't give without it coming out of my pocket. 

Am I missing something here? Does my filing status make it so I can't actually get a tax credit? Thank you!

[TeresaM]

Yes, if you are filing married filing separately, it will limit the credit to one half of what is entered.

The Arizona Department of Revenue says:
The credit is equal to the amount of cash contributed up to the maximum amount allowed. For 2022, the maximum amount of credit that a taxpayer can establish for the current taxable year is $623 for single taxpayers or heads of household. For married taxpayers that file a joint return, the maximum credit that can be established for the current taxable year is $1,245. In most cases, for married taxpayers who file separate returns, each spouse may claim only one-half (½) of the credit that would have been allowed on a joint return.

Please click on these links for more information this tax credit. 

AZ tuition credit

Instructions by year for AZ tuition credit

[Jaredhaxton]

Thank you! That confirms my suspicion. No love for the mfs filing status! Curse'd student loans!!