2024 Tax Credit Limits Based on Filing Status Tax Filing Status 2024 Limit Single Filer $2,500 Married Separate Filer $2,500 Married Joint Filer $5,000 Pass-Through Owner (not making HB 149 election)* $25,000 C Corp, Trust, or Pass-Through electing to pay tax at the entity level (HB 149) 75% of annual tax liability Business that pays insurance premium tax 75% of annual tax liability, but credit shall not exceed $1 million *Pass-through income required to support a $25,000 tax credit is $455,373 ($25,000 divided by .0549 = $455,373). Keep in mind that income from the pass-throughs can include both profits (K-1) and [...]
GRACE Scholars was founded by former Archbishop Wilton Gregory of Atlanta and Bishop J. Kevin Boland of Savannah in 2008 to take advantage of the SSO/tax credit legislation. Archbishop Gregory Hartmayer, OFM Conv. of the Archdiocese of Atlanta and Bishop Stephen Parkes of the Diocese of Savannah currently serve as the Chair and Vice Chair of the GRACE Board of Directors and are committed supporters of the GRACE mission. GRACE Scholars is a Georgia nonprofit corporation and tax exempt charity (501-c-3 organization) and has met the requirements for designation as a Student Scholarship Organization (SSO) in Georgia. Since GRACE is an [...]
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. If scholarship needs are filled at a designated GRACE school, funds may be directed to another school with [...]
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. For 2023, the cap of $120 million was met on the first business day of the year. Georgia taxpayers were approved for a prorated percentage of their requested amounts.
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.
Yes. You may contribute a lesser amount up to the maximum limit (see FAQ – How much can I contribute? ) based on your filing status.
The answer depends on your Georgia tax filing status: Married filing jointly: Up to the lesser of $5,000 per year or your Georgia income tax liability. Married filing separately: Up to the lesser of $2,500 per year per spouse or your Georgia income tax liability. Single or head of household: Up to the lesser $2,500 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 $25,000. More information for owners of pass-through entities can be found here. ‘C’ corporation: [...]
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.
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.