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.
Actually, the confirmation e-mail means that you have provided GRACE with the information and 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 for 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 early February of 2016. 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 1, 2016).
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 2018 tax credit to GRACE in 2017.
Donor makes his/her donation to GRACE in 2018 – that is the tax year.
Donor files tax return with the Georgia Department for 2018 in 2019.
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) and 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. GRACE has met the requirements for designation as a student scholarship organization (SSO) in Georgia. Because GRACE is an SSO, Georgia taxpayers can redirect part of their tax liability to GRACE and qualify for a generous tax benefit created by the Georgia legislature – a 100 percent tax credit. As GRACE is a tax exempt charity (501-c-3 organization), gifts to GRACE may also qualify as charitable contributions under federal law.
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 more than 3,000 taxpayers have redirected part of their Georgia income taxes 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.
GRACE provides tuition assistance to students with demonstrated financial need who wish to attend Georgia Catholic schools that participates in GRACE.
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 redirects $1,000 to GRACE. A 100 percent tax credit reduces the taxpayer’s Georgia income tax by $1,000. One 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.
Georgia allocates a limited amount tax credits each year to the program. The approval letter indicates that the taxpayer’s redirection of taxes qualifies for a tax credit.
Yes. You can designate any Catholic school participating in GRACE.
You can also designate your redirection to the Board Choice (BC) fund or the Economically Disadvantage 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.
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)
- 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