FAQ for Pass-Through Entities
I'm a business owner, how much can I donate?
Owners of LLCs, S-Corps and Partnerships are allowed to receive a dollar-for-dollar state income tax credit for up to $10,000.
I own more than one business, can I get the full tax credit for each of them?
No. The paperwork submitted to the Dept. of Revenue must be in the name of the individual, not the business entity. A business owner is allowed a maximum donation of $10,000 regardless of how many businesses owned.
What about my spouse? They're an owner in the business too.
Each owner is allowed the maximum donation of $10,000. So your spouse can donate $10,000 and you may donate $10,000 separately. The paperwork submitted to the Dept. of Revenue is in the name of each individual donor.
I'm in a partnership with multiple owners. Can each of us donate?
Absolutely! Each owner is allowed the maximum donation of $10,000. The paperwork submitted to the Department of Revenue is in the name of each individual donor.
How do I know how much I can actually donate?
All Georgia income, loss and expense from the taxpayer selected pass-through entity (or entities) will be combined to determine Georgia income for purposes of determining the tuition tax credit. The combined income will then be multiplied by 0.06 to determine the amount of tax that was paid. The maximum amount that can be claimed as a tax credit is 6% of the Georgia income from pass through entity (or entities). Amounts above the 6% threshold may not be claimed in the current year.
How much Georgia income needs to be generated to be eligible for the full $10,000 tax credit?
A taxpayer’s Georgia income from pass through entities must be at least $166,667 to fully take advantage of the $10,000 tax credit ($166,667 x 0.06 = $10,000).
Can I reduce my quarterly estimated tax payments by the amount I donate?
Yes you can. You are allowed to deduct 25% of your contribution amount from each of your quarterly payments.
What happens if my donation exceeds my tax liability?
While the tax credit is a non-refundable, any excess credit above your tax liability can be carried forward for up to five years.
Can I choose to support more than one school with my donation?
Absolutely. Just make that notation during the Paperless Donation Process and designate how you'd like the funds to be divided and we'll honor your wishes.
Owners of LLCs, S-Corps and Partnerships are allowed to receive a dollar-for-dollar state income tax credit for up to $10,000.
I own more than one business, can I get the full tax credit for each of them?
No. The paperwork submitted to the Dept. of Revenue must be in the name of the individual, not the business entity. A business owner is allowed a maximum donation of $10,000 regardless of how many businesses owned.
What about my spouse? They're an owner in the business too.
Each owner is allowed the maximum donation of $10,000. So your spouse can donate $10,000 and you may donate $10,000 separately. The paperwork submitted to the Dept. of Revenue is in the name of each individual donor.
I'm in a partnership with multiple owners. Can each of us donate?
Absolutely! Each owner is allowed the maximum donation of $10,000. The paperwork submitted to the Department of Revenue is in the name of each individual donor.
How do I know how much I can actually donate?
All Georgia income, loss and expense from the taxpayer selected pass-through entity (or entities) will be combined to determine Georgia income for purposes of determining the tuition tax credit. The combined income will then be multiplied by 0.06 to determine the amount of tax that was paid. The maximum amount that can be claimed as a tax credit is 6% of the Georgia income from pass through entity (or entities). Amounts above the 6% threshold may not be claimed in the current year.
How much Georgia income needs to be generated to be eligible for the full $10,000 tax credit?
A taxpayer’s Georgia income from pass through entities must be at least $166,667 to fully take advantage of the $10,000 tax credit ($166,667 x 0.06 = $10,000).
Can I reduce my quarterly estimated tax payments by the amount I donate?
Yes you can. You are allowed to deduct 25% of your contribution amount from each of your quarterly payments.
What happens if my donation exceeds my tax liability?
While the tax credit is a non-refundable, any excess credit above your tax liability can be carried forward for up to five years.
Can I choose to support more than one school with my donation?
Absolutely. Just make that notation during the Paperless Donation Process and designate how you'd like the funds to be divided and we'll honor your wishes.
