Frequently Asked Questions

`Who can contribute?`

Any Georgia taxpayer may make a donation and qualify for the Georgia Private School Tax Credit, assuming the State cap of $50 MM hasn’t been met.

`Why is a donation to GRACE unique?`

A donor receives 100% credit against State taxes. Donor is reimbursed 100% of donation. Money that would have gone to the State is now supporting Catholic schools in Georgia.

`What does GRACE do with the donation?`

GRACE provides tuition assistance to families with financial need. Donors can designate specific schools to receive their donation.

`How does it work?`

A taxpayer in Georgia can “use” part of his Georgia income tax for a student scholarship organization (SSO) like GRACE Scholars which is to provide Scholarships for students entering Catholic schools in Georgia. This occurs because the tax payer receives a 100% tax credit against his GA tax liability for the amount donated to GRACE Scholars. Therefore, money that was going to pay taxes is being “used” to support Catholic education for those in need.

`How much can I contribute?`

To receive full credit, you may contribute up to the LESSER of (a) your actual tax liability or (b) the maximum allowable limit based on filing status (see below)



A single taxpayer can “use” up to $1,000.
A married couple filing jointly can “use” up to $2,500.
A married couple filing jointly, that pays AMT (alternative minimum  tax) can “use” up to $ 2,500 and save $725 (due to a tax savings of  $3,225 for both federal and state).
A “C’ Corporation can “use” up to 75% of its total Georgia state tax liability.
Partnerships, LLCs and Sub-S corporations are subject to the owners’ individual limits.

If you contribute more than the allowable limits above, unused credits can be carried forward for 5 years.

`Do I have to contribute the maximum allowable limit based on my tax filing status?`

No. You may contribute lesser amounts up to the maximum limit (see How much can I contribute above) based on your filing status in order to receive full tax credit for the tax year of donation.

`How does a tax credit differ from a deduction?`

A tax credit is significantly more beneficial than a deduction. A credit reduces your Georgia taxes dollar-for-dollar while a deduction reduces the taxable income upon which taxes are calculated. If you claim the tax credit on your Georgia return, you cannot also claim a deduction for the same donation on your Georgia return. However, you may be able to claim the payment as an itemized deduction on your Federal income tax return, thus lowering the amount of Federal tax paid.

`How can I contribute?`

You can contribute for a tax-credit in two simple steps:


Step 1:  Get your intended contribution “pre-approved” by the State Department of  Revenue by completing the TP1 Form and sending the completed form to  the State Department of Revenue.
Step 2:  Once you receive your “approved” TP1 Form from the State Department of  Revenue, make your contribution to GRACE Scholars by sending your check  (or paying on-line at our website). You must send/make your payment  payable to “GRACE Scholars” within 30 days of the “approval date” of  your “approved TP1″ Form and before Dec. 31 of the applicable year,  whichever comes first. You must also send your “approved” TP1 form to  GRACE Scholars in order for GRACE Scholars to accept your  contribution. You have the option to designate the school(s) to receive  your contributions by completing the GRACE Scholars Designation Form.  Contributions not specifying specific schools as recipients will  automatically default to go to the GRACE Scholars Board Fund.
For more  information on the contribution process, please click on “Contribution  Process” under the “Share GRACE” menu. Forms are accessible via the  “Forms” menu on the right.

`How often can I contribute?`

You can contribute as often as you like during the calendar year.

`What is the deadline to donate to GRACE for a tax credit?`

Donations to GRACE may be made at anytime. However, if you would like to apply your tax credit to the current year, you must make your contribution by December 31 of the current year. Please note: all donations to GRACE Scholars must be preapproved by the state. Therefore, GRACE recommends that you complete and send your, pre approval form (IT-QEE-TP1) to the State by mid-October to begin the donation process. For forms and instructions please click “Contribution Process” and “Forms” links on the right.