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. NCCS has partnered with Faith First Georgia (Formerly Georgia Christian Schools Scholarship Fund) to enable our community to take advantage of this program.
What is the Georgia Education Expense Credit (GEEC)?
GEEC allows Georgia taxpayers (individuals 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 NCCS 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 NCCS?
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 North Cobb Christian School. Any Georgia income tax dollars that you direct towards Faith First Georgia/GCSSF will provide financial aid to a new student who has passed the admission standards of NCCS, but may need some financial help. At the same time, it frees up allotted funds for financial aid at NCCS to be given to existing NCCS students who also may need some financial assistance.
Example 1: Georgia Income Tax Liability - $3,500.00
| Without HB 1133 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 | $3,500 | Versus | Amount 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 HB 1133 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 | $5,500 | Versus | Amount 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 HB 1133 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 | $1,200 | Versus | Amount 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 | |
How does it work?
NCCS has partnered with the Faith First Georgia/GCSSF a state approved Student Scholarship Organization (SSO). We have three options for filing this year!
Option 1
Fill out the application and the IT-QEE-TP1 and return it to the NCCS Advancement Office along with your check made out to Faith First Georgia and we will handle the rest!
If you would like to file the paperwork for yourself, you may file online or by mail.
Option 2
To file by mail:
- Complete the Georgia Form IT-QEE-TP1 to apply for and receive preapproval for the income tax credit. Once you have filled it out, please send it to the Georgia Department of Revenue, Qualified Education Expense Credit, 1800 Century Blvd. NE, Suite 8301, Atlanta, GA 30345. No check is required at this time. Within 30 days of receiving your application, the DOR will send you an approval form.
- Within 60 days of receiving your approval notice from the DOR, you must send a copy of the approval form and a check made payable to "Faith First Georgia/GCSSF." Please make sure to write "North Cobb Christian School" in the memo section of the check! Mail the copy of the approval form and the check to Faith First Georgia/GCSSF, 1000 Whitlock Avenue, Suite 320/PMB 345, Marietta, GA 30064.
- Faith First Georgia/GCSSF will send you a Form IT-QEE-SSO1 acknowledging your contribution.
- When you complete your Georgia income tax return for 2012, you may apply a tax credit equal to the amount you donated to Faith First Georgia/GCSSF!
Option 3
To file online:
The information below is provided by the Georgia Department of Revenue. 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.
Effective January 4, 2012, 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 to log into their account.
Disclaimer: Taxpayers should not disclose their GTC login and password information. This compromises the confidentiality of taxpayer information.
If you are a registered Georgia taxpayer with the Department of Revenue, you will need to sign up for online access. For instructions on how to do so, please view this instructional video.
If you are not a registered Georgia taxpayer with the Department of Revenue, you will need to register as a new taxpayer in Georgia. For instructions on how to do so, please this instructional video.
The following information is needed for individual taxpayers to sign up for online access in GTC:
- Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- A valid e-mail address
- The Federal Adjusted Gross Income (FAGI) of the most current return filed for the past two tax years
What are the limitations of the program?
Participants may redirect any amount up to $1,000 per year for those filing taxes as an individual, or up to $2,500 for married couples filing jointly. A C-Corporation that pays Georgia taxes may donate up to 75% of their Georgia Tax Liability.
Please note that the House placed a cap of $51,500,000 million per year in tax credits under GEEC. Applications are approved on a first come, first served basis. In 2012, the cap was reached in August, 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/GCSSF, noting NCCS in the memo line. At the very latest (and if the cap has not been met), applications should be postmarked by November 1 in order to allow enough time to make a contribution by December 31.
More information can be found in the GEEC Brochure and FAQs. If you have any questions, please contact Krys West, by email or at 770-975-0252.
Notes:
- Please talk to your tax professional regarding the specific donation you are able to make.
- When filling out form IT-QEE-TP1, the taxpayer ID# for Faith First Georgia/Georgia Christian Schools Scholarship Fund is #26-2678846.
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