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 2018 is $58 million. This program 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 2017, the cap was reached and exceeded on the first day of business for the state. Each participants requests was pro-rated at approximately 49.4%. For 2018, it is our full expectation that the cap will be exceeded on 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 these steps.
1. Get Pre-Qualified. For the 2018 tax year the DOR is handling all applications online. Please follow this link to the Faith First website and click on the “Apply Online Form IT-QEE-TP1” icon on the right. 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 Department of Revenue (DOR) on the first business day of the New Year. The reason for this process is to make sure that the 2018 cap of $58 million on Education Expense Credits has not been exceeded.
2. Verification: After filling out the form on the Faith First website please send Steve an email letting him know you’ve applied and the dollar amount. This will allow us to verify with Faith First and insure they have all the correct information. Your notification will also allow us to track our potential funding.
3. Faith First makes Requests: This step requires no action from you. On the first business day of the New Year, which I believe will be January 2nd, your request will be input to the Georgia DOR.
4. DOR Confirmation. The Georgia DOR will review your application. You will then be sent an approval letter by mail. This letter will include the approved amount you can donate. You should receive this letter by the end of February 2018. Last year most of the approval letters were received before the end of January.
5. Donate to Help Teens. After you receive 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.
6. 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.