Tuesday, January 22, 2013

Georgia Goal: How student scholarship organizations can change the way you pay taxes

In the face of overcrowding and severe budget concerns, Georgia had to find a way to reduce the number of students in its public schools. In order to do this, the Georgia Goal Scholarship Program was instituted.  The state has set aside $51 million annually in state tax credits to allow taxpayers to redirect a portion of their own state taxes to support scholarships at private schools of their choosing through the use of qualified education expense credits.  Any Georgia taxpayer, C-corporation, or trust can participate and contribute their tax dollars and receive a 100% state tax credit up to $2,500 for a married couple filing jointly, or up to 75% of the C-corporation or trust's tax liability, to fund scholarships at the school of their choosing.  Once the cap is reached each year, no further contributions will be accepted.  If you have a school you wish to support and would like to redirect your state tax dollars, you can visit the link here to learn more.  Contact your school administrator to find out if they are involved.

Steven Voynich, CPA