335-S: Credit for Corporate Contributions to School Tuition Organizations – Distribution to Individual Shareholders (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 335-S reports an individual shareholder’s share of an S corporation’s credit for contributions to school tuition organizations. It lists the organizations, credit approval numbers, total contributions, and the shareholder’s ownership percentage and portion of the cre
Who files this form
Form 335-S is used to distribute the credit for corporate contributions to school tuition organizations to individual shareholders of an S corporation.
The S corporation must complete a separate Form 335-S for each individual shareholder. Shareholders use the information to complete Form 335-I.
What you'll need
To complete Form 335-S, have:
- The S corporation’s name, employer identification number, and tax-year information.
- The individual shareholder’s name, Social Security number, and ownership percentage.
- Each school tuition organization’s name and credit approval number.
- Total contributions from Form 335, Part 1, line 13.
Individual shareholders need Form 335-I to report their share of the credit. If you claim the credit and itemize deductions on federal Schedule A, also check the amount deducted on Arizona Schedule A for the required add-back.
How to file
For the S corporation:
- Complete Form 335-S for each individual shareholder.
- Enter total contributions from Form 335, Part 1, line 13, on line 11.
- Enter the shareholder’s ownership percentage on line 12.
- Multiply line 11 by line 12 and enter the shareholder’s credit amount on line 13.
- Include a copy with the corporation’s return, provide a copy to the shareholder, and keep a copy for the corporation’s records.
For the individual shareholder, enter the amount from Form 335-S, line 13, on Form 335-I, Part 1, line 11.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Missing copies: The S corporation must include a copy with its return, give a copy to each individual shareholder, and keep a copy for its records.
- Claiming the credit in the wrong year: If the shareholder files on a calendar-year basis and the corporation files on a fiscal-year basis, claim the credit for the year in which the corporation’s fiscal year ends.
- Overlooking the deduction add-back: If you claim the credit and itemize deductions on federal Schedule A, add back the lesser of the credit on line 13 or the amount deducted on Arizona Schedule A. The form refers you to the instructions for more details, but those instructions were not provided here.
Questions people ask
How is my share of the credit calculated?
Multiply the total contributions on line 11 by your ownership percentage on line 12. The result on line 13 is the credit available to you.
Where do I report the credit shown on Form 335-S?
Enter the amount from line 13 on Form 335-I, Part 1, line 11.
What if I use a calendar tax year but the corporation uses a fiscal year?
Claim the credit on your return for the year in which the corporation’s fiscal year ends. The form gives this example: if the corporation’s tax year ends in February 2024, claim the credit on your 2024 tax return.
Does the corporation need a separate form for each shareholder?
Yes. The form directs S corporations to complete Form 335-S for each individual shareholder and provide that shareholder with a copy.