Contributor FAQ
How does the Education Tax Credit program help the state of Georgia?
Quite simply, it saves the state money; and lots of it. Georgia is mandated by the State Constitution to provide an education for every child that is a citizen of Georgia. For 2022, the state average to publicly educate a child is $11,903 (as published by the GA Department of Education). Students receive far less than this amount in scholarship assistance.
So, for every student that uses an Education Tax Credit scholarship to attend a private school, the state saves thousands of dollars. With the number of scholarship recipients, this program saves the state of Georgia more than $100 million a year.
What is the process to contribute to the Tuition Tax Credit program?
First, a tax credit request must be filed with the GA DOR. We do this for you through our Paperless Donation process. We file these requests electronically and the DOR has up to 30 days to approve or deny the request. As long as there are funds available under the cap, your request will be approved. Once your request is approved, you then have up to 60 days to make your contribution, in full, to ASF. So, it's an apply now, contribute later process.
Can I electronically file my taxes if I participate in this program?
Yes you can. However, if requested by the Tax Commissioner, taxpayers must show their tax credit documentation.
I'm an Alternative Minimum Tax (AMT) filer. Will this program be beneficial to me?
Yes. It typically provides a greater benefit to AMT filers as compared to non-AMT filers. Each tax payer's situation is unique, so your tax advisor will be able to determine and explain your exact benefit.
Can I designate that my contribution will provide a scholarship for a particular student?
No you cannot. The law is very clear that you can designate your contribution to benefit a particular private school in Georgia, but that you may not direct it to a specific individual.
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.
Am I required to choose a school(s)?
No. If you'd like to help students no matter which Georgia private school they choose to attend, we have an Undesignated Fund. We utilize this fund to provide scholarship assistance to those eligible students who will not be attending a school that we otherwise have funds available for.
How do I make my contribution?
We accept checks, bank draft or electronic checks. If you are contributing by electronic check or bank draft, you can do so on-line by clicking here.
If contributing by check, please make your check out to: Alyn Scholarship Fund and mail it to:
Alyn Scholarship Fund
1320 South Madison Ave. #115
Douglas, GA 31533
How much can Individuals contribute?
Single Individuals - up to $2,500.
How much can Married Couples contribute?
Married couples filing jointly - up to $5,000
or
If filing separately - each spouse can contribute up to $2,500
I'm an owner in a business, how much can I contribute?
Each shareholder of a Pass-Through Entity (S-Corp, LLC, Partnership, etc) can give up to $25,000. For more details, see our section on
FAQ for Pass-Through Businesses.
What is the HB 149 election for pass-through entities?
Each year, S-corps and partnerships (including multi-member LLCs) have the option to pay their GA income taxes at the entity level just like C-corps do. When this provision is utilized, the individual shareholders don't pay the state income taxes; the business entity does. A tremendous benefit of doing this is that the IRS allows state taxes that are paid by businesses to be claimed as an ordinary and necessary business expense which reduces the federal tax liability.
Can C-Corporations contribute?
Yes they can. C-Corporations can contribute up to 75% of their state tax liability.
Can Insurance companies contribute?
Yes. Insurance companies can contribute up to 75% of their state tax liability. (limited to $1 million per company)
What happens when the annual cap ($120 million) is met?
Once the annual cap has been met, no further tax credit requests are approved for that year. The fund reopens the following year on the first day of business in January. The process that the Dept. of Revenue uses is to "day stamp" tax credit requests on the date it's received. If the tax credit request is received prior to the cap being met, then the request is granted. If the tax credit request is received after the cap has been met, the request is denied.
What happens if a tax credit request is received on the same day the annual cap is met?
In this instance, the Dept. of Revenue prorates each tax credit request received on that day. Through this process, all who make requests are assured of being able to make a contribution; just in a lesser amount than requested.
Quite simply, it saves the state money; and lots of it. Georgia is mandated by the State Constitution to provide an education for every child that is a citizen of Georgia. For 2022, the state average to publicly educate a child is $11,903 (as published by the GA Department of Education). Students receive far less than this amount in scholarship assistance.
So, for every student that uses an Education Tax Credit scholarship to attend a private school, the state saves thousands of dollars. With the number of scholarship recipients, this program saves the state of Georgia more than $100 million a year.
What is the process to contribute to the Tuition Tax Credit program?
First, a tax credit request must be filed with the GA DOR. We do this for you through our Paperless Donation process. We file these requests electronically and the DOR has up to 30 days to approve or deny the request. As long as there are funds available under the cap, your request will be approved. Once your request is approved, you then have up to 60 days to make your contribution, in full, to ASF. So, it's an apply now, contribute later process.
Can I electronically file my taxes if I participate in this program?
Yes you can. However, if requested by the Tax Commissioner, taxpayers must show their tax credit documentation.
I'm an Alternative Minimum Tax (AMT) filer. Will this program be beneficial to me?
Yes. It typically provides a greater benefit to AMT filers as compared to non-AMT filers. Each tax payer's situation is unique, so your tax advisor will be able to determine and explain your exact benefit.
Can I designate that my contribution will provide a scholarship for a particular student?
No you cannot. The law is very clear that you can designate your contribution to benefit a particular private school in Georgia, but that you may not direct it to a specific individual.
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.
Am I required to choose a school(s)?
No. If you'd like to help students no matter which Georgia private school they choose to attend, we have an Undesignated Fund. We utilize this fund to provide scholarship assistance to those eligible students who will not be attending a school that we otherwise have funds available for.
How do I make my contribution?
We accept checks, bank draft or electronic checks. If you are contributing by electronic check or bank draft, you can do so on-line by clicking here.
If contributing by check, please make your check out to: Alyn Scholarship Fund and mail it to:
Alyn Scholarship Fund
1320 South Madison Ave. #115
Douglas, GA 31533
How much can Individuals contribute?
Single Individuals - up to $2,500.
How much can Married Couples contribute?
Married couples filing jointly - up to $5,000
or
If filing separately - each spouse can contribute up to $2,500
I'm an owner in a business, how much can I contribute?
Each shareholder of a Pass-Through Entity (S-Corp, LLC, Partnership, etc) can give up to $25,000. For more details, see our section on
FAQ for Pass-Through Businesses.
What is the HB 149 election for pass-through entities?
Each year, S-corps and partnerships (including multi-member LLCs) have the option to pay their GA income taxes at the entity level just like C-corps do. When this provision is utilized, the individual shareholders don't pay the state income taxes; the business entity does. A tremendous benefit of doing this is that the IRS allows state taxes that are paid by businesses to be claimed as an ordinary and necessary business expense which reduces the federal tax liability.
Can C-Corporations contribute?
Yes they can. C-Corporations can contribute up to 75% of their state tax liability.
Can Insurance companies contribute?
Yes. Insurance companies can contribute up to 75% of their state tax liability. (limited to $1 million per company)
What happens when the annual cap ($120 million) is met?
Once the annual cap has been met, no further tax credit requests are approved for that year. The fund reopens the following year on the first day of business in January. The process that the Dept. of Revenue uses is to "day stamp" tax credit requests on the date it's received. If the tax credit request is received prior to the cap being met, then the request is granted. If the tax credit request is received after the cap has been met, the request is denied.
What happens if a tax credit request is received on the same day the annual cap is met?
In this instance, the Dept. of Revenue prorates each tax credit request received on that day. Through this process, all who make requests are assured of being able to make a contribution; just in a lesser amount than requested.