SSO – Student Scholarship Organization Overview
Do You Pay Georgia Taxes?
Instead of paying those tax dollars to the state, you can redirect them to your favorite independent school to directly support children’s education. The Georgia Private School Tax Credit allows eligible private citizens and corporations to receive tax credits for donations to Student Scholarship Organizations (SSOs). SSOs will in turn provide tuition funding to the school to distribute to eligible parents of enrolled private school students.
Participation in the SSO is simple. KRCS partners with Apogee who manages our SSO account. With no cost to the taxpayer, it is a redirection of $2,500 of your state tax liability and a qualifying charitable contribution that in turn is used to help current need-based pre-qualified KRCS parents or parents of students entering middle school or high school from public schools.
- Go to www.apogee123.org and select the “Forms” link.
- Complete the required fields and hit “Submit”.
- Your application will be received immediately and will be ready to be submitted to the Department of Revenue (DOR) for approval (which starts January 1).
- The DOR has up to 30 days to approve a tax credit request. Upon approval, you will have 60 days to fund your credit before it expires.
- You will receive an email from Apogee with your approval due date and payment options. With the cap likely to be met in early January, the 60-day time limitation will like expire in March.
What is the maximum amount I can contribute?
Up to $1,000 for a single individual. Up to $2,500 for a married couple. Up to 75% of a C-corp’s or eligible Trust total Georgia income tax liability. $10K max for Pass-through taxpayers.
How is this education credit better than a tax deduction?
This credit gives you a dollar-for-dollar reduction in the amount you owe in Georgia taxes. For example, if you donate $2,500, then your tax bill would be reduced by the full $2,500.
How does this impact my current tax withholding?
Participation in the program does not automatically change your withholdings amount. The benefits of your donation will be realized when you file your year-end taxes.
If I am itemizing on my federal return, under the tax code, is there any additional benefit?
Great news! Any amount of your contribution above and beyond your $10K max deduction will significantly reduce your federal tax burden.
What happens if my donation exceeds my tax liability?
The tax credit is a “nonrefundable” credit. Any excess can be carried forward for up to 5 years.
Can I donate if I plan to get a refund when I file my taxes?
Yes! Getting a refund means you’ve overpaid your tax liability. Making a donation will decrease your “pre-paid” tax liability, potentially resulting in an additional refund.
Can Apogee accept matching gifts and charitable contributions?
Yes. Apogee is a 501c3 non-profit and is eligible to receive all charitable gifts. Participation in the Apogee tax credit, due to the changes in the tax code, will likely significantly reduce your federal tax burden as you are receiving both a dollar-for-dollar Georgia tax credit and a federal charitable contribution deduction.
- Divert up to 75% of your Georgia tax liability.
- Established a convenient and consistent mechanism and incentive for your business to contribute directly to educating Georgia’s children.
- Targets educational expenditures directly to families and children in local communities rather than institutions that may reduce the amount of resources going directly to students.
- Provides a cost-effective method of maintaining philanthropic goals in a much more tax beneficial manner.
- In general, businesses are rewarded by owners, shareholders, equity analysts and financial institutions for minimizing the percentage of income going to taxes because a lower tax burden is associated with sound financial management (even though contributions to Georgia tax credit scholarships would be equivalent to the amount being paid in taxes).
Pass Through Tax Payer - Redirect up to $10K!
A recent change in the law now allows individuals who receive income through a pass-through entity to redirect as much as $10,000 towards private school education opportunities and receive a Federal charitable deduction with a dollar-for-dollar state tax credit.
Thanks to your support, Apogee has awarded scholarships to thousands of families seeking a choice in their children’s education!
Apogee Scholarship Fund
3300 Cumberland Blvd.
Atlanta, GA 30339
Phone (404) 419-7123/27
Fax (404) 419-7101