Tax Credit Scholarship Program

 

The State of Illinois has created a new way to fund scholarships for children who choose to attend Catholic schools through the “Invest in Kids Act.” Scholarships offered through this program have the potential to cover up to 100 percent of tuition and eligible charges for next school year at Joliet Catholic Academy. 

The Empower Illinois Scholarship Granting Organization website (www.empowerillinois.org) is now operational and will be accepting applications for the 2019-2020 school year on Tuesday, January 15, 2019 at 7 p.m.

In August 2017, with bipartisan support, the Illinois House and Senate passed a comprehensive education funding bill which was signed into law by the Governor. The bill included a new five-year program for Tax Credit Scholarships (TCS) for students in private schools that will create more equity in school funding throughout Illinois.  Below is a FAQ with information to date.  Updated information will be posted as it becomes available.

Visit www.weteachmore.org for up-to-date details, or contact JCA Director of Admissions Mr. Ryan Quigley at rquigley@jca-online.org or 815.741.0500, ext. 214 with questions.

Interested Donors

Dear JCA Families and Friends,

The Illinois Tax Credit Scholarship Program is still very new and because of this we have had several people ask how donating to this scholarship, in the benefit of Joliet Catholic Academy, would be different than gifting directly to JCA. I thought it would be appropriate to answer these questions by giving examples to help you see the benefits of gifting to the Tax Credit Scholarship program.

For example, if someone in the 25% tax bracket gives a $1,000 gift to JCA, the donor would receive a 25% deduction or $250 off their taxes. If the same person donates $1,000 to JCA through the Tax Credit Program, they would receive 75 cents on the dollar tax credit, a credit of $750 on their State income taxes.

You can see that the additional $500 off your Illinois state income taxes is a great way to save money on your taxes and give an opportunity for low income families to receive an education from Joliet Catholic Academy.

With an Illinois income tax increase from 3.75% to 4.95%, Illinoisans that make $100,000 would pay $4,950 instead of the $3,750 they paid last year. With this being said, donating to a cause you believe in, which would make-up some of the $1,200 additional tax dollars, is a win-win.

Here is a further example regarding a corporation donation. According to the Tax Credit Scholarship Program, corporations cannot gift directly to a specific school like individual taxpayers, however, they can gift to specific regions; JCA is in Region 3. The funds would be distributed throughout that particular region for scholarship.

For example, if a corporation is taxed at 21% and they gift $10,000 to JCA, a deduction of $2,100 would be made on their taxes. If they made a gift to Region 3 through the Tax Credit Scholarship, they would receive $7,500 credit towards their Illinois income taxes. This would be an additional $5,400 in tax savings.

Please know that this program greatly helps Catholic education. I urge you to ask your tax advisors about the Tax Credit Scholarship Program and how it could help you save more money.

Regards,
John Horn
Director of Development
Joliet Catholic Academy
jhorn@jca-online.org / 815.741.0500

Donor Process

Individual and corporate donors can reserve tax credits through mytax.illinois.gov by following these steps:​​

1. Create a MyTax Illinois account on mytax.illinois.gov. Anyone applying for a scholarship tax credit is required to have an account. If you do not have one, the first step is requesting a Letter ID from the Illinois Department of Revenue (this can take up to 10 days).​

2. Apply for a tax credit on mytax.illinois.gov. Donors will need to provide the following information:
​- Region to which he/she plans to donate​
– Name of SGO to which he/she plans to donate (the Joliet Diocese is partnering with Empower Illinois)​
– Amount he/she plans to donate​ to the SGO within 60 days of receiving your application approval and the Contribution Authorization Certificate.​

3. Designate the donation to Joliet Catholic Academy​
– Provide certificate from the SGO to use tax credit when filing a 2018 return in 2019.​

​Visit http://www.revenue.state.il.us/InvestInKids/Contributor.htm for more information on the donor process.

 

Empower Illinois – How to Donate Tutorial from Empower Illinois on Vimeo.

Additional Links:

How Do I Apply?

About Tax Credit Scholarships

ACERCA DE EMPOWER ILLINOIS Y EL PROGRAMA DE BECAS DE CRÉDITO TRIBUTARIO

Scholarship Application FAQ’s

What You Need to Know

LO QUE NECESITA SABER

JCA Donor Postcard

Illinois Department of Revenue Invest in Kids Act

How do I know if my family is financially eligible? Illinois Tax Credit Scholarship Program

K-12 students from low-income families are eligible to receive a Tax Credit Scholarship.  See the chart below for more details.

Before April 1, priority will be given to students who meet one of the following categories:

  • Are members of a household whose previous year’s total annual income does not exceed 185% of the federal poverty level ($45,510 for a family of 4);
  • Reside within a focus district;
  • Received a scholarship from a scholarship granting organization during the previous school year; or
  • Are siblings of students currently receiving a scholarship.

After April 1, all other qualifying students will be considered for scholarships, subject to availability of funding.

 2017 Federal Poverty Level (FPL) Chart
Household members 185% FPL 250% FPL 300% FPL
1 $22,311 $30,150 $36,180
2 $30,044 $40,600 $48,720
3 $37,777 $51,050 $61,260
4 $45,510 $61,500 $73,800
5 $53,243 $71,950 $86,340
6 $60,976 $82,400 $98,880
7 $68,709 $92,850 $111,420
8 $76,442 $103,300 $123,960

Note:

  • If more than eight people in your household, for each additional person, add $4,180 to the baseline FPL number for a family of 8 ($41,320) and then multiply by 1.85, 2.5 and 3 to arrive at the corresponding income limits.
  • Foster children are deemed to have a household income that does not exceed 185% of the federal poverty level.

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