What is EITC?
Through the Educational Improvement Tax Credit Program (EITC), anyone who pays PA state taxes receives up to a 90% tax credit by donating to WCA. This program, formerly only available to businesses, is now available to individuals; a contribution to Windsor results in a 90% tax credit toward your state taxes.
For example, if you earn $50,000, you will owe $1,534 to the state of PA this year. If you make a $1,534 contribution to Windsor by December 31, 2017, the state of PA will allow you to claim a 90% credit of $1,381.50 when you file your state tax return. The total cost to you for your contribution is $153.
Step 1: From last year’s PA-40 form or your current paystubs, estimate your annual income. Then, estimate your total state tax for the current year, as 3.07% of your estimated annual income.
Step 2: Make a donation to Windsor Christian Academy LLC for 3% of your income. This represents the estimated amount of your Pennsylvania State Tax. Report your donation to Windsor on your Pennsylvania state tax return, requesting a 90% tax credit.
Result: When your tax return processes, the tax credit received from the state reimburses you at 90% of your donation to WCA. The Windsor Scholarship Fund is funded! The result is education for students whose families could not afford tuition. The strength of the school is increased because our classes are full, our programs are funded, the school runs well, and the children are educated in a way that is honoring to God.
1: Make an appointment with WCA’s EITC coordinator.
2: Gather your most recent tax forms and/or pay stubs.
3: Make a commitment to WCA for the date and amount of your donation.
Talk to the business office at Windsor to answer these questions:
- If I am donating before I receive the credit, how do I manage this float?
- How much does this cost me?
- Who does this scholarship help?
- When do I write the check?