Yes. As long as the other school has signed up to participate with an approved Student Scholarship Organization (SSO), you can designate a portion of your donation for that school. GRACE transfers those funds to the SSO affiliated with that school and notifies the SSO partner of the donor information. On the pre-registration form online, select other and type in the name of the school. On a paper form, write-in the name of the non-GRACE school.
No. Georgia Department of Revenue Regulation 560-3-2-.26 requires electronic filing for income tax returns in which series 100 tax credits are claimed, utilized or included in any manner. This is necessary so that the Department’s systems can more efficiently process these returns.
Individual taxpayers (those filing as single, married filing separate or married filing jointly): If your Georgia income tax liability is at least as much as your GRACE contribution, your refund will increase by the amount of your donation. However, if your state income tax liability is less than your donation to GRACE, the amount of the unused credit can be carried forward for five years. C Corporations or owners of pass-through entities cannot carry-forward any education expense tax credits.
GRACE accepts checks, credit card payments or stock donations. Click here for more information on ways to give.
No. The Georgia Department of Revenue has ruled that the charitable fund may not be used to pay for a tax credit for an individual (single or married) or a corporation. For more information, contact your tax professional or the trustee/custodian of your charitable fund.
The confirmation e-mail means that you have provided GRACE with the information and authorization to apply for your tax credit to the Georgia Department of Revenue’s online portal. GRACE will apply for your tax credit on the first business day in January. The department has 30 days from the date of the request to notify the donor of approval. In recent years, taxpayers have been receiving their approval letters in January.
The donor will learn in mid January 2019. The donor will receive an approval letter from the Georgia Department of Revenue. The letter will be dated within 30 days of the date that the tax credit application was submitted (i.e., January 2, 2019).
Donors have 60 days from the date of the approval letter to make their payments. The earliest that donors can make payments is on day one of the 60-day period. When the 60-day period expires, there are no extensions, and the tax credit is void.
The tax year is the year that you make your donation to GRACE. Pre-registrations are usually submitted to GRACE the year before the tax year. Tax returns are filed the year after the tax year.
Here is an example:
Donor submits his/her pre-registration for a 2019 tax credit to GRACE in 2018.
Donor makes his/her donation to GRACE in 2019 – that is the tax year.
Donor files tax return with the Georgia Department of Revenue for 2019 in 2020.
Yes, we take your privacy and the security of your personal data very seriously. E-mail addresses will not be sold, rented or leased to 3rd parties. The sensitive data you provided to us is used solely by GRACE. Your information is 1) encrypted in transit from you to us, 2) encrypted at rest while it stays on our server and 3) only decrypted at time of use. Always look for the HTTPS:// or Protecting Lock when accessing our TLS/SSL encrypted forms.
No. The Georgia Department of Revenue has ruled that the rollover is not eligible for the education tax credit. For more information, contact your tax professional or the trustee/custodian of your IRA.
GRACE Scholars is a Georgia nonprofit corporation and tax exempt charity (501-c-3 organization). GRACE has met the requirements for designation as a student scholarship organization (SSO) in Georgia. Because GRACE is an SSO, Georgia taxpayers can contribute to GRACE in exchange for a generous tax benefit created by the Georgia legislature – a 100 percent tax credit.
GRACE was founded by Archbishop Wilton Gregory of Atlanta and Bishop J. Kevin Boland of Savannah in 2008 to take advantage of the SSO/tax credit legislation. Since then thousands of taxpayers have contributed to GRACE which, in turn, has awarded scholarships to students wishing to attend Georgia Catholic Schools. All students receiving GRACE awards have demonstrated financial need. Bishop Boland was succeeded by Bishop Gregory Hartmayer, OFM Conv., whose service includes work as a pastor and Catholic school educator.
GRACE provides tuition assistance to students with demonstrated financial need who wish to attend Georgia Catholic schools that participate in GRACE. Click here for a list of participating schools.
The answer depends on your Georgia tax filing status:
- Married filing jointly: Up to the lesser of $2,500 per year or your Georgia income tax liability.
- Married filing separately: Up to the lesser of $1,250 per year per spouse or your Georgia income tax liability.
- Single or head of household: Up to the lesser $1,000 per year or or your Georgia income tax liability.
Individuals owning interests in pass through entities (such as ‘S’ corporations, LLC’s, and partnerships) are eligible for an enhanced tax credit of up to $10,000.
More information for owners of pass-through entities can be found here.
- ‘C’ corporation: Up to 75 percent of the estimated Georgia income tax liability.
- Fiduciaries (estates and taxable trusts): Up to 75 percent of the estimated Georgia income tax liability.
Under certain circumstances, unused credits can be carried forward for up to 5 years. Contact your tax professional for details.
Yes. You may contribute a lesser amount up to the maximum limit (see FAQ – How much can I contribute? ) based on your filing status.
A tax credit is significantly more beneficial than a deduction. A credit reduces your Georgia taxes dollar-for-dollar. A deduction reduces the taxable income to which the applicable tax rate is applied.
For example, suppose a taxpayer contributes $1,000 to GRACE. A 100 percent tax credit reduces the taxpayer’s Georgia income tax by $1,000. On the other hand, the state income tax rate for most Georgians is 6 percent. So a $1,000 deduction from income would only generate a $60 reduction in taxes. The difference is 100 cents on the dollar for a credit and 6 cents on the dollar for a deduction.
Because there are limited tax credits available each year, a taxpayer interested in contributing to GRACE must be pre-approved by the Georgia Department of Revenue (DOR). In 2008, the Georgia legislature placed an annual cap on the amount of available education expense credits. Since 2015, the entire $58 million cap has been met on the first business day of the year with requests actually exceeding the cap. As a result, Georgia taxpayers are approved for a prorated percentage of their requested amounts. For 2019, the cap has been increased to $100 million. This will likely result in a taxpayer proration that could be as high as 90%.
Yes. You can designate any Catholic school participating in GRACE. Click here for the link of participating schools.
You can also designate your contribution to the Board Choice (BC) fund or the Economically Disadvantaged Family Fund (EDFF), which serves the poorest of GRACE’s families and students. BC and EDFF funds are allocated to schools by the GRACE board of directors.
You may split your contributions among up to three designations. Simply indicate on your pre-registration form how much money you would like to go to each school.
You can find the scholarship application overview and forms here.
When a student is awarded GRACE financial assistance, the award covers the years until the student completes the highest grade at the school. The award is reviewed annually to determine continuing financial need, to assess whether the student remains in good standing with the school, and to affirm the student is a resident of Georgia.
Yes. The maximum scholarship is the lowest of the following:
- The student’s calculated financial need (CFN) determined by a financial aid service such as FACTS
- 80% of the tuition rate applicable to the student
- An index of per-pupil public school spending in Georgia – the index is established annually by the Georgia Department of Education