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Woodward Academy and the Georgia GOAL Scholarship Program

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1 Woodward Academy and the Georgia GOAL Scholarship Program

2 You have a choice Pay income taxes to the state of Georgia Provide financial aid to eligible students to attend Woodward Academy OR HB 1133 is a 2008 Georgia law that grants an income tax credit to individuals and corporations who contribute to qualified student scholarship organizations (SSOs) such as the Georgia GOAL Scholarship Program The passage of HB 1133 was an incredible victory for the school choice movement, providing parents with choices related to their children’s education. Your participation is critical to make this victory a meaningful one

3 Qualified Education Expense Tax Credit (HB 1133)
Individual and corporate taxpayers receive Georgia income tax credit for contributions to qualified Student Scholarship Organizations (SSOs) SSOs were created by the law to implement HB 1133; they are responsible for receiving funds raised under the program, holding those funds for participating schools, and distributing the funds for financial aid as recommended by participating schools The law allows taxpayers to direct their money to a specific school by “designating” a school on their contribution check (but not a specific student) The taxes redirected under HB 1133 are used to provide financial aid to students eligible to enroll in pre-k4 or kindergarten, or to students transferring from a Georgia public school to a qualified private school GOAL is Georgia’s leading SSO, with most participating schools, most funds raised to date, and most scholarships awarded

4 HB 1133 contribution requirements – at a glance
Individual taxpayers receive Georgia income tax credit for contributions to qualified Student Scholarship Organizations. Individuals may redirect: $1,000 (single) $1,250 (married filing separately) $2,500 (married filing jointly) C-Corporations can redirect taxes and receive a tax credit for up to 75% of their Georgia income tax liability S-Corporation shareholders, LLC members and Partnership partners are subject to individual contribution limits Contributions are also eligible for federal charitable income tax deduction

5 How will this impact my taxes?
Example: If a married couple, with a total 2010 tax liability of $4,000 pays $2,500 to Georgia GOAL Scholarship Program during 2010: They now owe only $1,500 in Georgia income taxes for 2010 Upon filing their 2010 Georgia income tax return, If the couple had already paid the entire $4,000 to Georgia, they are eligible for a refund of the $2,500 paid to GOAL If the couple had not yet paid their Georgia income taxes, the $2,500 paid to GOAL would count toward payment of those taxes To “recoup” the money in advance of filing their Georgia income tax return, the taxpayer couple could reduce their Georgia income tax withholdings, or, if they pay taxes on a quarterly (estimated) basis, reduce the amount of their estimated payments to the GA DOR

6 A simple two-step process for taxpayers to redirect their Georgia income taxes to GOAL
Contribute to GOAL: Send the following items directly to Georgia GOAL Scholarship Program: – Complete the GOAL Scholarship Contribution Form – Sign page 2 of the IT-QEE-TP1 Form – Make your check payable to Georgia GOAL Scholarship Program GOAL will manage the paperwork and approval process as follows: – Fill out your IT-QEE-TP1 Form using your GOAL Form information – Fax or your TP1 Form to the DOR for pre-approval – Receive approval from the DOR by return Fax or return – Process your contribution check when DOR approval is received – Send you a copy of your approved TP1 Form – Send you a Form IT-QEE-SSO1 acknowledging your contribution Claim the Credit: – File your Georgia income tax return and take the credit (GOAL will send tax filing instructions early in 2011 to assist you) 6

7 How are the contributions obligated?
HB 1133 requires that at least 90% of designated contributions be obligated for financial aid at Woodward Academy GOAL will obligate at least 91% and return any excess administrative fees to provide more scholarships; in 2009, GOAL’s net administrative fees were 6% GOAL uses the designated funds and investment earnings on those funds to provide financial aid to applicants recommended by Woodward Academy Woodward Academy officials recommend potential financial aid recipients and the amount of the GOAL Scholarships they will receive

8 HB 1133 scholarship requirements – at a glance
Scholarships may only be awarded to “eligible” students Students must be enrolled in Georgia public school Or, must be eligible to enter PreK-4 or Kindergarten Multiple year scholarships may be awarded The awards for each GOAL Scholarship recipient will be paid in full on July 1st Monies from GOAL will be available for qualifying students in the academic year


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