Georgia Qualified Education Expense Tax Credit Program
Give a Teen a New Beginning in the New Year
Now you can provide scholarship funds to the students at The Joy House's on-campus, GAC-accredited school. Your contribution will qualify for a dollar-for-dollar education tax credit on your Georgia income tax return.
The Georgia Qualified Education Expense Tax Credit Program allows individual and corporate taxpayers to redirect a portion of their State income taxes to benefit students at private schools, including The Joy House Academy.
Each year, the State of Georgia allows a portion of state income tax dollars to be designated for school scholarships. The portion for 2017 is $58 million. This program is called the Georgia Private School Tax Credit and allows individuals and companies to receive a dollar for dollar tax credit for donations for student scholarships at accredited non-profit private schools in Georgia. The state legislature amended the law in 2013 to open this benefit up to LLCs, S-Corps and Partnerships.
All donations are processed by organizations called Student Scholarship Organizations(SSO). The Joy House is working
with Faith First Georgia as our SSO. All contributions designating the Joy House Academy will be directed to the teens in
our program to meet their educational needs.
Scholarship contributions can have a significant impact on supporting the Joy House program, as nearly 20 percent of our
budget needs are for education.
In 2016, the cap was reached and exceeded on the first day of business for the state. Each participants requests was pro-rated at approximately 53%. For 2017, it is our full expectation that the cap will be exceeded on January 3rd, the first business day of the new year for the state. With that in mind, it is imperative that we have those who want to participate to act between now and the end of the year to fill out the appropriate request form. Last year only those requests that were input on the first business day were honored. You can fill out the appropriate request online and it will be input by Faith First, our SSO, on that first business day. You can get the details below on how to do this.
The state has set generous limits. You can contribute any amount you choose up to the following:
- Couples filing jointly can redirect up to $2,500 of their income tax liability.
- Individuals can redirect up to $1,000 of their income tax liability.
- C Corporations that pay Georgia income taxes can redirect up to 75% of their income tax liability.
- LLCs, S-Corps, and Partnerships: Up to $10,000 or 6% of income, whichever is less.
Easy To Participate
Designating your tax credit to The Joy House Academy is easy. Simply follow the following four steps.
1. Get Pre-Qualified. For 2017 the DOR is handling all applications online. Please follow this link to the Faith First website and click on the "Apply Online!" icon on the left. Fill out the IT-QEE-TPI form online. On completion and submission a copy will be emailed to you and to Faith First who then will input this request to the Georgia DOR on January 3rd, first business day of the New Year. The reason for this process is to make sure that the 2016 cap of $58 million on Education Expense Credits has not been exceeded.
2. Confirmation. The Georgia DOR will review your application. You will then be sent an approval letter by mail. This will let you know that you can make your contribution.
3. Donate to Help Teens. After you recieve your approval letter, you will have 60 days to make your donation to Faith First GA, Inc. You can make your donation by sending a check by mail. Please designate Joy House Academy on the memo line of your check and include a photocopy of the DOR approval letter.
4. Get Credit! Faith First GA, Inc. will send you a confirmation form IT-QEE-SSO1, which, along with the DOR approval letter, you will need to file with your state tax return in order to claim the Educational Expense Credit.
If you have any questions about the process, or need assistance, contact Steve Lowe by email or phone at 706-253-7569.