335: Credit for Corporate Contributions to School Tuition Organizations (2024)

Who files this form

Use 2024 Arizona Form 335 to report the credit for corporate contributions to school tuition organizations. The form covers:

• C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with unrelated business taxable income (UBTI).
• Partnerships passing the credit through to corporate partners.
• Qualified S corporations electing to pass the credit through to individual shareholders.

An S corporation may elect to pass the credit through if its combined contributions reported on Forms 335 and 341 are at least $5,000.

What you'll need

Have the following information available to complete Form 335:

• Your name as shown on Form 99T, 120, 120A, 120S, 120X, or 165, and your employer identification number (EIN).
• Each school tuition organization's name and address, credit approval number, and contribution amount.
• For credit carryovers, the taxable year, original credit amount, and amount previously used.
• Form 335-P, line 13, if you have a credit flowing through from a partnership.
• Form 341, line 11, if you are completing the S corporation credit election and have contributions reported there.

Part 3 also directs you to enter the credit amounts on Form 300.

How to file

Include Form 335 with your return. The supplied form does not give a mailing address or e-file directions.

• In Part 1, list contributions and credit approval numbers, total the contributions, and add any partnership flow-through amount from Form 335-P, line 13.
• In Part 2, calculate available carryovers by subtracting amounts previously used from the original credit amounts.
• In Part 3, calculate the total available credit and transfer the specified amounts to Form 300, Part 1, line 7.
• S corporations continue to Part 4 to determine eligibility and make the credit election.

Partnerships passing the credit through must complete Form 335-P for each corporate partner, include a copy with their return, and provide a copy to each corporate partner.

S corporations passing the credit through must complete Form 335-S for each shareholder, include a copy with their return, and provide a copy to each shareholder.

Common mistakes

• Do not leave Form 335 out of your return. The form says to include it.
• Partnerships passing through the credit and qualified S corporations electing to pass it through must enter “0” on line 20.
• Do not pass the credit through to S corporation shareholders if line 25 is less than $5,000. The form says to stop if this requirement is not met.
• Check only one election box on line 27. The S corporation election is irrevocable for the indicated taxable year.
• When passing through the credit, remember to provide Form 335-P to each corporate partner or Form 335-S to each shareholder.

Questions people ask

Where do I report a credit flowing through from a partnership?

Enter the amount from Form 335-P, line 13, on Form 335, line 12.

How do I calculate available carryover?

In Part 2, subtract the amount previously used from the original credit amount for each listed taxable year. Add the available amounts on lines 14 through 18 and enter the total on line 19.

Can an S corporation pass this credit through to shareholders?

Yes, if its combined contributions on Forms 335 and 341 are at least $5,000. Complete Part 4 to determine eligibility and make the election.

Can an eligible S corporation claim the credit at the corporate level instead?

Yes. Line 27 offers a choice between passing the credit through to individual shareholders and claiming it at the corporate level. Check only one box. The election is irrevocable for the indicated taxable year.

Official sources

• https://azdor.gov/forms