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TAX CREDIT SCHOLARSHIP PROGRAM

 

INVEST IN KIDS.  LOWER YOUR TAXES.

 

Don’t miss this incredible opportunity to support an Archdiocese of Chicago Catholic School and receive a substantial income tax credit.  The number of tax credits approved by the State of Illinois are limited so act now!

 

 

WHAT IS THE TAX CREDIT SCHOLARSHIP PROGRAM?

The new State of Illinois “Invest in Kids Act” tax credit scholarship program offers a transformative opportunity for Archdiocese of Chicago Catholic Schools while providing you with a substantial income tax credit.  Children in Illinois now have access to new scholarships to attend non-public schools and receive an outstanding Catholic education. It’s a wonderful opportunity to help low-income students receive the education they deserve.

Archdiocese of Chicago Schools have set the standard in faith, excellence and service. They are particularly effective in serving those in poverty who deserve the opportunity to benefit from an excellent education.  More than 27,000 families, representing 44,000 students, have taken the first step to apply for a tax credit scholarship through the Invest In Kids program.  There are thousands of students still waiting for scholarships.

 

When you make a contribution, you may designate which Catholic school will receive your donation.  Your donation will ensure our schools are open to more students who deserve an equal opportunity for a Catholic education.

 

 

HOW MUCH IS THE TAX CREDIT?

The Invest in Kids Act of 2017 offers approved Illinois individual and business taxpayers income tax credits in the amount of 75% of their total qualified contributions made to one or more Scholarship Granting Organizations (SGOs) during a taxable year.  Scholarship Granting Organizations (SGOs) are non-profits that receive qualified contributions from individuals and businesses and then disburse these funds in the form of scholarships to eligible students to attend qualified, non-public schools in Illinois.  Click Here to view a list of approved SGO’s in the Invest In Kids Act of 2017.

The State of Illinois can issue up to $75 million in tax credits per calendar year ($100 million in donations) which are distributed geographically throughout five regions in the state. Income tax credits are awarded on a first-come, first-served basis, and approval is granted as long as the regional and statewide thresholds have not been met. Don’t miss out on the opportunity to receive a tax credit!  Individuals and businesses must request approval to receive the income tax credit prior to making your contribution.

Example:

You pay $10,000 in IL state income taxes each year.  

You choose to donate $13,333 to the “Invest In Kids” Tax Credit Scholarship.

The entire $13,333 becomes student scholarships.

Scholarships are awarded to students from low-income families who enroll in an Archdiocesan school.

You claim a $10,000 income tax credit.

When filing your 2018 IL State Income Taxes you claim a $10,000 credit.

INVITATION TO DONATE

Thank you for your thoughtful attention to this new effort to support Catholic education. Please prayerfully consider a donation of 1.33 times your anticipated 2018 Illinois state income tax liability (adjusted gross income times 4.95 percent) to a Scholarship Granting Organization.  As a donor, you will receive a state tax credit equal to 75% of your donation.  Your generous gift can greatly reduce or eliminate your 2018 state tax liability while transforming Catholic education for those in need within the Archdiocese of Chicago.

WHAT IS THE PROCESS TO SIGN-UP AND DONATE?

There are four easy steps to participate in the program.

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.

  • Click Here for step-by-step instructions on how to request a Letter ID.

  • Once you’ve received your Letter ID you need to activate your MyTax Illinois account.

  • Click Here for step-by-step instructions on how to activate your MyTax Illinois account.

2

Once you have received your Letter ID and created your tax account, apply for the “Invest In Kids” tax credit on mytax.illinois.gov. Donors will need to provide the following information:

  • Region to which you plan to donate

  • Name of SGO to which you plan to donate (the Archdiocese is partnering with Empower Illinois and Big Shoulders Fund)

  • Amount you plan to donate

  • Click Here for step-by-step instructions on how to apply for the credit

3

Donate to the SGO within 60 days of receiving your application approval and the Contribution Authorization Certificate (CAC). The CAC will be issued electronically to your MyTax Illinois account within three business days of approval of your application.

  • Make your contribution to the Scholarship Granting Organization (SGO) within 60 days after issuance of the CAC. You must provide a copy of the CAC to the SGO.

  • The Archdiocese of Chicago is partnering with the SGO, Empower Illinois and Big Shoulders Fund.

    • Click Here to make your donation to Empower Illinois.  You can select ‘Undesignated’ and your donation will be used to support any children who need a scholarship in the Archdiocese Catholic School system.

    • Click Here to make your donation to Big Shoulders Fund.

  • Within 30 days of receiving your contribution, the SGO will issue you a Certificate of Receipt (COR) through your MyTax Illinois account.

4

Use your tax credit when filing your 2018 IL State Tax Return in 2019 by supplying the Certificate of Receipt provided by the SGO.

  • Approved credits may be claimed beginning with the filing of your 2018 income tax return.

  • Any credit amount that exceeds your tax liability for the year may be carried forward and applied to your tax liability in the subsequent five taxable years.

  • Click Here to read more about claiming your income tax credit.

QUESTIONS?

If you would like more information, or to speak with someone about applying for a scholarship tax credit you can also contact the Archdiocese of Chicago, Office of Catholic Schools, Tax Credit Scholarship Team at 312.534.2617 or tcs@archchicago.org.

For additional information you can also visit the Archdiocese of Chicago, Office of Catholic Schools, Tax Credit Scholarship website or read the Illinois Department of Revenue’s Bulletin about the Invest In Kids Act.  Or contact your tax adviser.