The Contribution Process – Information for Financial Advisors and CPAs – Forms and Tax Filing
NEW VIDEO – 2023 Expanded Tax Credit Options – Benefits for Pass-Through Owners
2023 Tax Credit Cap Met
The 2023 Tax Credit Cap of $120 million was met on January 3, 2023. All original requested amounts were prorated or reduced. This reduction decreases our scholarship funds. You can help by donating your original amount. The excess over your approved amount qualifies as a charitable contribution.
- Once registered for the tax credit, watch for an approval letter in the mail from the Department of Revenue. The letter gives your approval date and the amount of your tax credit. Keep the letter for your tax records.
- Complete your contribution during the 60-day window. The window starts on the date of the approval letter. Contributions cannot be accepted before this date. When the 60-day window closes, the tax credit expires. No extensions.
You can begin the contribution process using any of the following options once you have been approved by the Department of Revenue for the tax credit. Simply click the options below to read further details.
Forms and Tax Filing Information
Electronic filing is required for taxpayers claiming the Qualified Education Expense (QEE) credit for taxable years beginning on or after January 1, 2017. Individual taxpayers that electronically file their tax return do not have to submit Form IT-QEE-SSO1. Form IT-QEE-SSO1 should be maintained by the taxpayer and made available to the Department of Revenue upon request.
Here is detailed information:
- Form IT-QEE-SSO1 is mailed to you by GRACE following receipt and processing of your donation. This acknowledges your contribution. A replacement copy can be requested at firstname.lastname@example.org.
- A software program’s Form IT-QEE-TP2 that is electronically filed with the Georgia income tax return satisfies the requirement that a taxpayer must submit Form IT-QEE-TP2 with the Georgia tax return when the QEE credit is claimed. For your reference, a blank TP2 form can be referenced above.
- These software vendors are Department of Revenue approved for e-filing
- How to claim the QEE Tax Credit using H&R Block
- How to claim the QEE Tax Credit using TurboTax
- Donors who itemize on the federal return: If a donor falls short of the full $10,000 SALT (State and Local tax) cap, the donor is allowed to treat their contribution to GRACE as payment of state or local taxes for federal income tax purposes.
- If you itemized your deductions on your federal return, in order to prevent “double dipping” you must add back to your Georgia taxable income any portion of the GRACE contribution deducted. This increase to Georgia taxable income is reported on Form 500 Schedule 1 – Adjustments to Income, as “Other” and use the description “Qualifed Education Expense Credit Adjustment.”
- Georgia Form 500 – Credit: The Qualified Education Expense Credit code number is 125. This needs to be entered on Form 500 Schedule 2 (Georgia Tax Credit Usage and Carryover). Enter your “Credit Certificate #” which was provided on your approval letter from the Georgia Department of Revenue, social security number and credit amount claimed.