In 2008, the Georgia General Assembly passed a law that allows a tax credit for amounts paid to an eligible student scholarship organization of a private school (grades k-12). That’s right a tax credit for making eligible contributions to a Georgia private school’s scholarship fund.
The law allows individual taxpayers to fund up to $1,000 per year and married taxpayers up to $2,500. Also, C Corporations can redirect up to 75% of their Georgia tax liability. Think of it as a prepayment of your Georgia tax liability that benefits a private school in your community. For Federal tax purposes it is treated like a charitable contribution, so it helps on Alternative Minimum Tax (AMT) if that applies.
Under this law there is a ceiling on the total amount that can be redirected under the program. For 2012, the ceiling is $51.5 million. This program has gained significant acceptance. Last year, 2011, was the first year that the program reached its funding limit. It is anticipated that this program will once again reach its limits, but much earlier in the year. Currently, the total funding under the program is around $15 million. We encourage every Georgia resident with a tax liability to elect into this program. It is critical that if you you wish to take advantage of this program, that you do so as soon as possible. The program should hit its ceiling in the early fall, if not sooner.
Please contact us if you wish to for us to assist you with the simple filing or contact the private school you wish to support and they will be glad to walk you through the process.