Georgia Education Expense Credit
With the enactment of the Georgia Education Expense Credit (HB1133), Georgia joins other states in giving parents an educational choice for their children. Crossroads Christian Academy has partnered with Faith First Georgia to enable our community to take advantage of this program.
What is the Georgia Education Expense Credit (GEEC)?
How can this tax credit benefit me and CCA?
How does it work?
How do I file?:
Fill out the application and return it to the CCA Office, along with your UNDATED check made payable to Faith First Georgia and we will handle the rest! All Applications received between October 2018 and December 2018 will be submitted online January 1, 2019.
What are the limitations of the program?
Individual taxpayers may redirect any amount up to $1,000 per year for those filing taxes as a single or head of household, or up to $2,500 for married couples filing jointly.
S Corps, LLCs, LLPs, and P.C.s. may contribute up to the actual amount expended or $10,000, whichever is less. A C-Corporation that pays Georgia taxes is allowed a credit for an amount not to exceed the lesser of the actual amount expended or 75% of the corporation’s income tax liability for the tax year. Any of the lesser amount that is not used can be used against the succeeding five year’s tax liability.
Please note that the House placed a cap of $58 million per year in tax credits under GEEC. Applications are approved on a first come, first served basis. In 2017, the cap was reached on January 4, so time is of the essence. Once you fill out the application, the state has 30 days to approve your application and return it to you. You then have 60 days to make your payment to Faith First Georgia noting Crossroads Christian Academy in the memo line.
If you have any questions, please contact Donna Madden at (770) 457-1148
Example 1: Georgia Income Tax Liability – $3,500.00
Without GEEC Tax Credit | With GEEC Tax Credit | |||
---|---|---|---|---|
GA Income Tax Liability | $3,500 | GA Income Tax Liability | $3,500 | |
GEEC Tax Credit | $0 | GEEC Tax Credit | $2,500 | |
Amount Due to State of GA | $3,500 | Versus | Amount Due to State of GA | $1,000 |
Less Amount of Georgia Paycheck Withholding | $3,900 | Less Amount of Georgia Paycheck Withholding | $3,900 | |
Amount Due OR | Amount Due OR | |||
Amount of Refund | $400 | Amount of Refund | $2,900 |
Example 2: Georgia Income Tax Liability – $5,500.00
Without GEEC Tax Credit | With GEEC Tax Credit | |||
---|---|---|---|---|
GA Income Tax Liability | $5,500 | GA Income Tax Liability | $5,500 | |
GEEC Tax Credit | GEEC Tax Credit | $2,500 | ||
Amount Due to State of GA | $5,500 | Versus | Amount Due to State of GA | $3,000 |
Less Amount of Georgia Paycheck Withholding | $4,000 | Less Amount of Georgia Paycheck Withholding | $4,000 | |
Amount Due OR | $1,500 | Amount Due OR | ||
Amount of Refund | Amount of Refund | $1,000 |
Example 3: Georgia Income Tax Liability – $1,200.00
Without GEEC Tax Credit | With GEEC Tax Credit | |||
---|---|---|---|---|
GA Income Tax Liability | $1,200 | GA Income Tax Liability | $1,200 | |
GEEC Tax Credit | GEEC Tax Credit | $2,500 | ||
Amount Due to State of GA | $1,200 | Versus | Amount Due to State of GA | <$1,300> |
Less Amount of Georgia Paycheck Withholding | $1,400 | Less Amount of Georgia Paycheck Withholding | $1,400 | |
Amount Due OR | Amount Due OR | |||
Amount of Refund | $200 | Amount of Refund | $2,700 |