Illinois enacted the Invest In Kids Scholarship Tax Credit Program in 2017. This program offers a 75 percent income tax credit to individuals and businesses that contribute to qualified Scholarship Granting Organizations (SGOs). The SGOs then provide scholarships for students whose families meet the income requirements to attend qualified, non-public schools in Illinois.
Donors interested in receiving a tax credit should register as soon as possible with mytax.illinois.gov in order to apply for the tax credit on January 2, 2018. Interested donors should speak with their accountant, or contact Bob Venhousen or Jason van den Brink. Also, this link provides a contribution example to illustrate the tax credit calculation.
TC Director of Advancement
TAX CREDIT SCHOLARSHIPS
The Tax Credit Scholarship will cover up to 100% of private school tuition up to a maximum of the average Illinois cost to educate which is roughly $13,000. Key information about the program and donating to these scholarships can be found below.
Scholarship amounts vary according to family income. Refer to this chart which shows income levels by family size and the corresponding scholarship amounts. These guidelines will serve as a pre-qualification when applications open on January 22.
Individual and corporate donors may receive a credit for their Illinois state taxes equal to 75 percent of donations to an SGO.
- A taxpayer donates $10,000 to an SGO; they are eligible to claim a $7,500 tax credit on their 2018 taxes.
Tax credits are capped at $1 million per taxpayer per year; a donor can contribute about $1.33 million to receive the maximum tax credit allowed. Donors cannot receive a federal deduction for gifts made through this program, but the net tax benefit to all donors is expected to be greater than ordinary charitable donations of an equal amount. Total tax credits are capped at $75 million per year statewide, which equates to $100 million in donations and scholarships. Please consult a tax professional to determine how such gifts will affect tax liability.
Timothy Christian Schools has partnered with The Children’s Tuition Fund (CTF IL), an independent 501(c)(3) non-profit SGO responsible for serving many of the participating Christian schools statewide. CTF IL handles all three steps of the SGO process from initial contribution to grant distribution.
- Processing donations from individuals and corporations
- Accepting scholarship applications from students/families – website to go live in early January, applications for scholarships cannot be submitted until January 22, 2018
- Distributing scholarships for eligible students/families to their chosen school in accordance with the law
For more information please explore these links:
You can direct your state income tax.
Have you heard of the Invest in Kids Act and the private school scholarships that result?
You can direct your individual or corporate state income tax liability by making a charitable donation to a state-certified scholarship organization. The Children’s Tuition Fund of Illinois (CTF IL) is the scholarship organization Timothy Christian has partnered with to help place underprivileged students in our school!
Until recently, Illinois residents had little control over how their tax dollars were distributed. However, in August 2017, the Illinois Legislature passed Senate Bill 1947, allowing individuals and corporations to direct up to $1,000,000 of their state income tax liability. Now, for example, taxpayers can secure credits of $7,500 by sending $10,000 to a state-certified scholarship-granting organization like CTF IL.
CTF IL makes sure your charitable donation is recognized by the Illinois Department of Revenue and that you, the donor, receive a tax credit for that donation. Also, when you make your Individual gift to CTF IL you can designate the funds for the sole benefit of eligible Timothy Christian students.
To help you take advantage of these credits, CTF IL will create a step-by-step donor manual which walks you through the entire donation process. Visit childrenstuitionfund.org to learn more.
Donors will need to register their contributions with Illinois in order to receive a tax credit. You can login or sign up to do so at this address. https://mytax.illinois.gov/_/
For more information contact Bob Venhousen at firstname.lastname@example.org / 630-782-4072 or Jason van den Brink at email@example.com / 630-782-4221.
CHILDREN’S TUITION FUND 731 Chapel Hills Drive, Colorado Springs, CO 80920 www.childrenstuitionfund.org Questions? Please call or email John Wilson Office: 719.867.0125 • Mobile: 719.494.3392 • John_Wilson@acsi.org