331-S: Credit for Donation of School Site – Distribution to Shareholders (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 331-S reports an S corporation shareholder’s share of the Credit for Donation of School Site. It lists the corporation’s credit amount, the shareholder’s ownership percentage and portion of the credit, and the shareholder’s portion of the donation expenses.
Who files this form
S corporations distributing the school-site donation credit must complete a separate 2025 Form 331-S for each shareholder, except trust or estate shareholders.
If an ownership share is held by a grantor trust that is disregarded for federal income tax purposes, the share is treated as owned by the grantor. The grantor may claim their share of the credit.
Shareholders use Form 331-S to complete their own Form 331 and include the completed Form 331-S with their return.
What you'll need
To complete Form 331-S, have:
- The S corporation’s name and employer identification number (EIN).
- The shareholder’s name and taxpayer identification number (TIN).
- The S corporation’s Form 331, Part 1, line 11 credit amount.
- The shareholder’s ownership percentage.
- The shareholder’s portion of the expenses for donating the property as a school site.
Shareholders need the completed Form 331-S to prepare their own Form 331. If the itemized-deduction add-back applies, review the donation amounts on federal Schedule A and Arizona Schedule A.
How to file
S corporations
- Enter the corporation’s and shareholder’s identifying information.
- On line 3a, enter the credit from Form 331, Part 1, line 11.
- On line 3b, enter the shareholder’s ownership percentage. Multiply line 3a by line 3b and enter the result on line 3c.
- On line 4, enter the shareholder’s portion of the school-site donation expenses.
- Give each shareholder a copy, keep a copy for your records, and include a copy of each completed Form 331-S with the S corporation return.
Shareholders
- Enter the amount from Form 331-S, line 3c, on your Form 331, Part 1, line 10.
- Include the completed Form 331-S with your return and keep a copy for your records.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Claiming both the credit and an itemized deduction for the same donation. The form says you cannot claim both. If you claim the credit and itemized deductions on federal Schedule A, add back the lesser of the amount on line 4 or the amount deducted on Arizona Schedule A.
- Using the wrong tax year when the corporation files on a fiscal-year basis. If you file on a calendar-year basis, claim the credit for the year in which the corporation’s fiscal year ends.
- Leaving out required copies. The corporation must provide a completed copy to each shareholder and include copies with its return. Shareholders must include their completed form with their returns. Both must keep copies for their records.
Questions people ask
How is my share of the credit calculated?
Multiply the S corporation’s credit on line 3a by your ownership percentage on line 3b. The result on line 3c is your portion of the credit.
Where do I report my share of the credit?
Enter the amount from Form 331-S, line 3c, on Form 331, Part 1, line 10.
What does line 4 represent?
Line 4 reports your portion of the value of the donated property and improvements used to calculate the credit.
Which year do I claim the credit if the corporation uses a fiscal year?
If you file on a calendar-year basis and the corporation files on a fiscal-year basis, claim the credit on your return for the year in which the corporation’s fiscal year ends.