Our Lady of the Sacred Heart High School

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EITC for Individuals

New & Unique Opportunity to Support OLSH AND Reduce Your Personal Income Taxes

If you are an OLSH supporter who is an employee or owner of a business, you could benefit from this program!

Background

For many years, the state of PA has afforded businesses an opportunity to support OLSH and reduce their income taxes through participation in the state’s Educational Improvement/Opportunity Scholarship Tax Credit Program (“EITC”). Beginning in 2017, OLSH “individual” donors can now participate in their personal capacity. This is big for OLSH and its students so please read on.

Why do this?

An individual makes a two year commitment and receives a PA tax credit equal to 90% of their contribution. Does that mean that you have an extra 10% cost? Not necessarily. Making a contribution to the EITC program in lieu of paying state income taxes can also reduce your federal income taxes if you are subject to the federal Alternative Minimum Tax (“AMT”). In that case, the sum of the 90% PA tax credit with the federal AMT tax reduction can EXCEED the contribution. Yes, that’s right. Beyond the tax reduction benefits that you’ll receive, you’ll be affording an individual(s) the opportunity to attend OLSH who might not otherwise be able to. In other words, you’ll be making a difference in someone’s life!

Who qualifies?

You need to be an employee, shareholder, partner or member of a business firm (this excludes nonprofits and government employees). Your individual participation is not conditional on participation of your business, although BOTH are eligible. In addition, you need to meet one of the two following tests:

  • Your individual income exceeded $200,000 in each of the two most recent years or your joint income with your spouse exceeded $300,000 in each of those years.
  • Your individual or joint net worth (excluding your primary residence and any mortgage securing it) exceeds $1,000,000, net worth being your total assets less total liabilities.

 

You will NOT be required to provide any personal financial information. You will simply check a box indicating that you meet one of these tests.

How do I participate?

OLSH is teaming up with a group of volunteer PA CPA’s to make this a simple process. How does it work?

  • You contact the OLSH advancement office to express your interest in participating.
  • You receive a document that outlines your participation in a special purpose entity LLC whose sole purpose is to collect contributions, make donations (to OLSH, for example), facilitate obtaining PA tax credits and to provide you the necessary forms to assist in completing your federal/PA income taxes. There are zero expenses. 100% of your participation gives rise to a federal charitable contribution and to a 90% PA tax credit.
  • A two year commitment is required at $3,500 or more per year.
  • If some unusual circumstance causes you not to be able to fulfill your second year commitment, the LLC and/or OLSH will find a substitute contributor.
  • You will receive information needed to complete your income taxes in February of the year following your contribution year – i.e. in plenty of time to file by April 15th.
  • The OLSH advancement office and finance committee will be available to assist you every step of the way but it’s really simple.

 

This is a SIGNIFICANT opportunity for OLSH. Can you please help us (and help yourself, at the same time)? Please contact OLSH finance committee member Bill Richardson at 412-594-7708 or wmrichardson@sisterson.com  with any questions you may have.

THANK YOU!   

 

Click below to download an EITC Calculator in excel that can help you to understand your benefits. If you need help using the calculator or have any questions about this program, contact OLSH finance committee member Bill Richardson at the contact information above.