Georgia Education Expense Credit

With the enactment of the Georgia Education Expense Credit (HB1133), Georgia joins other states in giving parents an educational choice for their children. Crossroads Christian Academy has partnered with Faith First Georgia to enable our community to take advantage of this program.

What is the Georgia Education Expense Credit (GEEC)?

GEEC allows Georgia taxpayers (individuals, businesses, and corporations) to receive a tax credit when directing a portion of their state income taxes for private school financial aid scholarships. Under this law, you can redirect a portion of your Georgia income taxes to provide financial aid assistance to incoming Crossroads Christian Academy students who are currently enrolled in public school. You will receive a dollar for dollar tax credit at the state level against your Georgia income tax liability, as well as a federal income tax deduction for a charitable contribution.

How can this tax credit benefit me and CCA?

Now you have a choice how to use your tax dollars! You can pay income taxes to the state of Georgia or you can redirect some of those taxes to provide scholarships to new students to attend Crossroads Christian Academy (CCA). Any Georgia income tax dollars that you direct towards Faith First Georgia will provide financial aid to a new student who has passed the admission standards of CCA, but may need some financial help. At the same time, it frees up allotted funds for financial aid at CCA to be given to existing CCA students who also may need some financial assistance. For examples of how GEEC helps you on your tax returns, please see the examples below.

How does it work?

CCA has partnered with Faith First Georgia, a state approved Student Scholarship Organization (SSO).

The following 3 options are available for filing:

Option 1
Fill out the application and return it to the CCA Office, along with your UNDATED check made payable to Faith First Georgia and we will handle the rest! All Applications received between October 2016 and December 2016 will be submitted online January 1, 2017.

Option 2
To file online: Please only choose this option after January 3, 2017. The CCA Office prefers that you submit your paperwork through them to be sure that your application for 2016 is filed on January 1. If you apply online through Faith First, your application will be submitted to the State of Georgia beginning January 1, 2017, but only in the order in which it was received. Several other schools use this online option, so please be aware that your application may not be filed on January 1, 2017 and you may risk losing your tax credit.

To easily apply online with Faith First, click here.

Option 3 - The information below is provided by the Georgia Department of Revenue.
The Georgia Department of Revenue has an electronic option for applying for the Qualified Education Expense credit via the Georgia Tax Center (GTC) website. All taxpayers desiring to apply electronically should go to the GTC website and register/login to their account. Click here for instructions for setting up your GTC account. Users will need their Social Security Number or Individual Taxpayer Identification Number, a valid email address, and their Federal Adjusted Gross Income of the most current return filed for the past two tax years.Disclaimer: Taxpayers should not disclose their GTC login and password information. This compromises the confidentiality of taxpayer information. If you have any questions regarding the electronic submission of Qualified Education Expense Credit applications, please contact the Tax Credits & Incentives Unit at 1-877-423-6711.

What are the limitations of the program?

Individual taxpayers may redirect any amount up to $1,000 per year for those filing taxes as a single or head of household, or up to $2,500 for married couples filing jointly.

S Corps, LLCs, LLPs, and P.C.s. may contribute up to the actual amount expended or $10,000, whichever is less. A C-Corporation that pays Georgia taxes is allowed a credit for an amount not to exceed the lesser of the actual amount expended or 75% of the corporation's income tax liability for the tax year. Any of the lesser amount that is not used can be used against the succeeding five year's tax liability.

Please note that the House placed a cap of $58 million per year in tax credits under GEEC. Applications are approved on a first come, first served basis. In 2016, the cap was reached on January 4, so time is of the essence. Once you fill out the application, the state has 30 days to approve your application and return it to you. You then have 60 days to make your payment to Faith First Georgia noting Crossroads Christian Academy in the memo line. If you have any questions, please Cole Mitchell (cole@crossroadschristian.academy) or at (770) 457-8963

Please talk to your tax professional regarding the specific donation you are able to make.
 

Example 1: Georgia Income Tax Liability - $3,500.00

Without GEEC Tax Credit With GEEC Tax Credit
GA Income Tax Liability$3,500 GA Income Tax Liability$3,500
GEEC Tax Credit$0 GEEC Tax Credit$2,500
Amount Due to State of GA$3,500VersusAmount Due to State of GA$1,000
Less Amount of Georgia Paycheck Withholding$3,900 Less Amount of Georgia Paycheck Withholding$3,900
Amount Due OR  Amount Due OR 
Amount of Refund$400 Amount of Refund$2,900 

Example 2: Georgia Income Tax Liability - $5,500.00

Without GEEC Tax Credit With GEEC Tax Credit
GA Income Tax Liability$5,500 GA Income Tax Liability$5,500
GEEC Tax Credit  GEEC Tax Credit$2,500
Amount Due to State of GA$5,500VersusAmount Due to State of GA$3,000
Less Amount of Georgia Paycheck Withholding$4,000 Less Amount of Georgia Paycheck Withholding$4,000
Amount Due OR$1,500 Amount Due OR 
Amount of Refund  Amount of Refund$1,000

Example 3: Georgia Income Tax Liability - $1,200.00

Without GEEC Tax Credit With GEEC Tax Credit
GA Income Tax Liability$1,200 GA Income Tax Liability$1,200
GEEC Tax Credit  GEEC Tax Credit$2,500
Amount Due to State of GA$1,200VersusAmount Due to State of GA<$1,300>
Less Amount of Georgia Paycheck Withholding$1,400 Less Amount of Georgia Paycheck Withholding$1,400
Amount Due OR  Amount Due OR 
Amount of Refund$200 Amount of Refund$2,700