What is a Student Scholarship Organization (SSO)?
SSO’s are non profit 501(c)(3) charitable organizations created to administer the funds contributed under the Georgia Private School Tax Credit Act and must allocate 90% of revenue for scholarships and tuition grants.
What is the Georgia Private School Tax Credit?
The Georgia Private School Tax Credit is a law that allows people and companies paying Georgia Income Taxes to donate to private schools and receive dollar for dollar credit off of their Georgia Income Tax making the cost of the donation essentially zero. The donations can be made to a specific private school. The law allows up to $50 million per year in tax credits for donations to private schools.
What is the history and purpose of the new tuition tax credit legislation that gave rise to the Georgia Private School Tax Credit Program
In 2008, the Georgia General Assembly passed House Bill 1133 and Governor Sonny Perdue signed it into law. The new law provides for the creation of student scholarship organizations (“SSO’s”) that use Georgia income tax credit-eligible contributions to provide scholarships for eligible students to attend private schools. Apogee is one of the SSO’s created to implement the new law and has been selected by Dominion to administer their donations under this program.
How can the Georgia Private School Tax Credit benefit my child in attending Dominion?
Students entering K4, K5, or 1st grade, or who will be transferring from public schools, are eligible for SSO scholarships. The Dominion administration makes scholarship awards based on family financial need. The funds will first be directed towards families that have applied for financial assistance through our third-party needs assessment organization. Any remaining scholarship funds will be distributed at the discretion of the board to other families in need.
What benefits are there for donors?
Donors can designate Dominion Classical Christian Academy to receive their scholarship donation. The board of Dominion will use general scholarship funds received for tuition assistance. Donors may receive a federal deduction for their contribution in addition to the dollar for dollar state tax credit on their income tax return.
How do I make a donation to receive the dollar for dollar credit off my Georgia Income Taxes?
Donors must work with a Georgia Department of Education (GADOE) approved Student Scholarship Organization (SSO) such as our partner, Apogee Scholarship Fund. Each approved SSO is a nonprofit 501(c) (3) charitable organization that manages the donations and scholarships/tuition grants under the Georgia Private School tax Credit law. Information on the process, as well as the necessary documents, are available at Apogee’s Web site.
How much can I donate and still receive the dollar for dollar credit off my Georgia Income Taxes?
An individual can donate up to $1,000.
A married couple filing a joint return can donate up to $2,500.
Married couples filing separately may donate up to $1,250 each.
S-Corp/LLC/Partnerships – shareholders of an S-Corp, members of an LLC or partner in a Partnership can redirect up to $10,000. (Note: $10,000 maximum encompasses individual applications max as well so if approved for $2,500 as a joint filer, maximum that can be requested is $7,500.)
A C-corporation (C-corp) paying Georgia Income Tax may donate up to 75% of its GA tax liability.
If I overpay on my Georgia Income Tax and have made a donation, will I receive a refund including the donation?
Yes, as long as your Georgia tax liability is greater than the donation amount. Before considering a donation to any SSO, we advise you contact your professional tax advisor to review the tax laws surrounding the Georgia Private School Tax Credit.
Who is eligible to receive a scholarship or tuition grant
Eligible student means a student who is a Georgia resident enrolled in a Georgia secondary or primary public school or eligible to enroll in a qualified kindergarten program or pre-kindergarten program.
How do I apply for a scholarship or tuition assistance?
Families seeking tuition assistance at Dominion may contact the school office or visit our website at dominionclassical.org for more information on the application process. Dominion uses a third-party to provide recommendations on tuition assistance. For more information, contact the school office.
Links and web sites
Apogee Scholarship Fund. – http://www.apogee123.org
Georgia Department of Education –http://www.doe.k12.ga.us/pea_policy.aspx?PageReq=PEAHB1133
Georgia Department of Revenue – http://www.dor.ga.gov/