Support GRACE Scholars

By providing support to families and their children, you are assisting in a commitment to Catholic education. Please prayerfully consider making a donation to give the gift of Catholic education to a child.

Individual Support

Donations from individuals not only assist children in receiving a Catholic education; you can also obtain a tax credit for your support! Individuals or a head of household that decide to support G.R.A.C.E. Scholars, Inc. will receive a credit against Georgia income tax liability in an amount equal to the actual amount expended or $1,000 per tax year, whichever is less. Married couples filing jointly who decide to support G.R.A.C.E. Scholars, Inc. will receive a credit against Georgia income tax liability in an amount equal to the actual amount expended or $2,500 per tax year, whichever is less.

For detailed information on how to make a donation to GRACE Scholars and obtain the tax credit, please see Redirect Your Taxes to GRACE. To see an example of how donating to GRACE would impact your taxes, please see the Financial Impact Example.

Corporate Support

Corporations that choose to support G.R.A.C.E. Scholars, Inc. can make a huge impact with a large number of families and children. Any corporation which has Georgia tax liability can donate and receive a tax credit for up to 75 percent of the total corporation’s income tax liability.

G.R.A.C.E. Scholars Inc. taxpayer ID is 26-3237980.

For detailed information on how to make a donation to GRACE Scholars and obtain your tax credit, please see Redirect Your Taxes to GRACE.

Tax Credit Financial Impact Example

Assume $75,000 federal/state taxable income on joint return; $300 donation; no change in state withholding during the year of donation (i.e. final state tax payment is reduced or refund calculated)

	Before	After	Cash In (Out)
Donation		$300	($300)
Fed. Tax. Income	$75,000	$74,700	(1)
Federal Tax	$11,600	$11,525	$75 (2)

State Tax. Income	$75,000	$75,000	(3)
State Tax	$4,000	$4,000
State Credit	$0	($300)	(4)
Net State Tax	$4,000	$3,700	$300

Net Total			$75 (5)

Donation increases charitable contributions
Marginal rate of 25%
Donation is not a deduction for state calculation
Donation is a credit against state taxes
In following year, because state taxes have been reduced, federal taxes would increase by $75 and state taxes would increase by $18 (6% of donation). Total cost over two years is $18 or 6% of the donation made

Please note:

AMT status or limitations on itemized deductions can change an individual’s federal and state tax calculations.
Individuals should consult with their tax advisors regarding their specific circumstances.

Redirect Your Taxes to GRACE

Whether you are an individual taxpayer or a representative of a corporation, there are four simple steps to receive a tax credit for your contribution to G.R.A.C.E. Scholars, Inc.

Follow these easy steps to make a donation to G.R.A.C.E. Scholars, Inc. and receive a tax credit from the State of Georgia:

1. Become qualified by the State of Georgia

Download and complete Georgia Form IT-QEE-TP1: https://etax.dor.ga.gov/inctax/2008_forms/TSD_HB-1133_FORM_IT-QEE-TP1.pdf

Please file this form with the Georgia Department of Revenue to qualify your donation for G.R.A.C.E. Scholars Inc. This is to ensure that the State of Georgia is aware of all those who will be participating and not surpass the $50 million cap on Education Expense Credits. If you experience trouble accessing the form, please go to the Georgia Department of Revenue website, http://www.etax.dor.ga.gov/inctax/taxcredits.aspx, for further assistance.

On the Form IT-QEE-TP1, you will need the Taxpayer ID for Georgia G.R.A.C.E. Scholars Inc., which is 26-3237980.

2. Receive confirmation from the State of Georgia

Your form will be reviewed by the Georgia Department of Revenue to ensure that the $50 million cap has not been surpassed. After that, you will receive a confirmation from the Georgia Department of Revenue of the approved copy Form IT-QEE-TP1 by U.S. Mail. This will allow you to proceed with your donation.

3. Donate to G.R.A.C.E.

Once you have the copy of the approved Form IT-QEE-TP1, there is an open period of 30 days to send your donation to G.R.A.C.E. Scholars Inc. Please send a copy, remember to keep the copy from the State of Georgia for your records, of your approved Form IT-QEE-TP1 and a check in the U.S. Mail.

GRACE allows donors to designate either Economically Disadvantaged Students or a particular school as the place where the scholarship money is used. To make an optional designation, please complete and send the GRACE Designation Form along with your check.

4. Obtain a tax credit

Once G.R.A.C.E. Scholars receives your copy of Form IT-QEE-TP1 and your donation in the form of a check, G.R.A.C.E. Scholars, Inc. will mail you a confirmation Form IT-QEE-SSO1, http://www.etax.dor.ga.gov/inctax/2008_forms/TSD_HB-1133_FORM_ITQEE-SSO1.pdf . This form will be important to maintain with your tax records.

To obtain your Qualified Education Expense tax credit you must file your state return in PAPER format. Besides completing your usual tax return forms, you will need to complete and attach Form IT-QEE-TP2, https://etax.dor.ga.gov/inctax/2008_forms/TSD_HB-1133_FORM_IT-QEE-TP2.pdf, along with copies of Form IT-QEE-TP1 and Form IT-QEE-SSO. If you experience trouble accessing the form, please go to the Georgia Department of Revenue website, http://www.etax.dor.ga.gov/inctax/taxcredits.aspx, for further assistance.

For more information or to answer any and all questions you might have regarding the Education Expense Credit, please go to the Department of Education's website: http://public.doe.k12.ga.us/pea_policy.aspx?PageReq=PEAHB1133.