The federal tax bill that recently passed just made participating in PA's Educational Improvement/Opportunity Scholarship Tax Credit Program (EITC/OSTC) even more attractive. In fact, it could be a game changer for you and for OLSH starting in 2018.
PA allowed, and still does, a 90% tax credit against your state income taxes by making a two year commitment to the OLSH scholarship organization. Say you were willing to donate $10,000 annually for two years. You get a $9,000 tax credit, and OLSH receives $10,000, at a cost of $1,000. That, in and of itself, is pretty awesome. But the scenario can be even better with the new federal tax bill.
As you may know, starting in 2018, state and local income taxes combined with real estate taxes are subject to an annual deduction cap of $10,000. You may have read or heard about how people were rushing to pay such taxes by the end of 2017. For someone who will continue to itemize their deductions (in lieu of claiming the IRS standard deduction), a charitable deduction (through participation in this program and not limited by the $10,000 cap) in lieu of paying state income taxes may become quite valuable. In fact, it’s possible that the 90% PA tax credit combined with the federal tax benefit of making the contribution (vs. paying additional state income taxes) could EXCEED the cost of your donation. I think you will agree that this is just amazing.
This program for individuals (along with the one that businesses can still support) is critical to helping OLSH families in need of tuition assistance, and to maintaining a robust enrollment at our school.
A simple 10 minute process is all it takes for you to participate, and the OLSH advancement office along with OLSH board/finance committee member and CPA, Bill Richardson, can provide more detail.
Applications are being accepted now, with payments deferred until next fall. Would you please consider helping us to support OLSH and its students before these beneficial tax credits are depleted?
Please contact Bill Richardson, OLSH Board of Directors and Partner, Sisterson & Co. LLP at WMRichardson@sisterson.com, or Ben Becze, Director of Advancement at OLSH, at firstname.lastname@example.org for more information.