We know giving back to the community can be worthwhile and rewarding. Often times we are left to contemplate what makes the most sense financially with regards to where and how much to give. As much as we may desire to donate, we often have to satisfy our own financial obligations first; most notably, TAXES. Believe it or not, there is now a way to not only satisfy but redirect our State Income Tax liability to a private school of your choice.
Both the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) are programs in Pennsylvania that allow state income tax dollars to be used for “tuition based” school scholarship purposes. Originally designed as a program for businesses, there was no way for an individual to donate to these programs in order to help children in need. Now, under new legislation, Accredited Investors are able to individually turn their tax dollars into scholarships for children looking for a better education. If you meet the requirements (Net Worth in excess of $1M or income greater than $200,000 in each of the past two years ($300,000 for couples)), this tax credit program is extremely beneficial. These programs are easy to apply for, and Thrive can help with the process.
There are several organizations close by that help to facilitate participation in the EITC and OSTC programs. BLOCS, which stands for Business Leadership Organized for Catholic Schools, is an example of one such organization that aims to give children access to a private, faith based education in the Philadelphia area. This program allows the sponsor to specifically select a private-faith based school of their choice and have up to 90% of their personal state income tax dollars turned into scholarships. Click here to learn more about BLOCS.
Keep in mind the school doesn’t need to be “faith-based” but the school must be registered to take part in the EITC and OSTC programs. This is a great way to possibly give back to your alma mater and help children earn the education they deserve.
As Life Planners, Thrive is committed to serving clients both financially and emotionally. Many of us are in a position to provide charitable gifts and donations to those in need. This program is just another great way to help children and families who are less fortunate. Taxes are inevitable but now you may have an opportunity to take control of where and how those dollars are spent and use them to satisfy your philanthropic side. If interested, Thrive can help make sure you turn those hard earned tax dollars into a charitable contribution!