PA Tax Credit Programs (EITC)
Did you know your Individual or Business PA tax dollars can support financial aid for well-qualified Wyndcroft students?
How?
Benefits For Wyndcroft - Scholarships for well-qualified low- and moderate-income students. The funds we receive under these programs provide direct support to our tuition assistance program. EITC recipients strengthen our entire school community.
Benefits For You - Your hard-earned tax dollars are directed to Wyndcroft to support scholarships. The EITC program allows you to get a 90% tax credit against your PA tax liability. For example, $3,500 EITC gift will earn you a 90% tax credit of $3,150 against your Pennsylvania taxes. Pennsylvania personal and business income, capital gains, and other taxes all qualify.
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Watch our virtual EITC informational session. (approx. 20 minutes)
100% of your EITC gift goes to fund Wyndcroft scholarships!
Who qualifies for the tax credit?
Individuals and businesses authorized to do business in Pennsylvania, their shareholders, and employees, which are subject to one or more of the following taxes may utilize the EITC:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
As always, consult your tax advisor to structure your EITC gifts to your best advantage.
Wyndcroft makes creating scholarships easy!
Fill out this form to let us know you want to learn more about this extraordinary opportunity. Robert Evans, Director of Alumni Relations and Planned Giving, will then contact you to set up a personalized EITC planning session.
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Frequently Asked Questions
Q: How much of my EITC gift will support scholarships at Wyndcroft?
A: 100% of all EITC gifts made to Wyndcroft through the Central Pennsylvania Scholarship Fund support low and moderate-income scholarships at Wyndcroft. The students who receive these scholarships can do Wyndcroft-level work and thrive here. The CPS Fund is staffed by volunteer CPAs and attorneys. It charges no fees.
Q: What’s the minimum EITC gift?
A: The minimum EITC gift in any calendar year is $3,500. A $3,500 EITC gift earns you a 90% tax credit that reduces your PA taxes by $3,150. You can make a gift up to the amount of your state taxes.
Q: After I sign my Joinder and return it to Wyndcroft, what happens?
A: You'll be invoiced for the gift of your choice, with 30 days to mail your check. You can increase or decrease the amount as long as the gift is at least the minimum of $3,500. Simply note the change on the Joinder.
Q: What’s the deadline for me to file a Joinder to make an EITC gift?
A: Joinders are accepted on a rolling basis. The supply of tax credits tends to dry up by the end of October to early November, so it's best to send Wyndcroft your Joinder as soon as you decide on the amount of your gift. To reserve your tax credits, call, email, or stop by the Wyndcroft Development Office at Marshall House to get your one-page Joinder, complete, and send it back to us. We'll send your Joinder to the Central PA Scholarship Fund and they will invoice you for the gift within 45 days, or as soon as Pennsylvania sends the Fund its annual award letter.
Q: How do the EITC tax credits get passed through to me in order to apply the 90% tax credit to my State taxes?
A: The LLC will send you a Pennsylvania K-1 in February so you can claim your tax credit for the gift you made in the prior year.
Q: Does the LLC pass through the 10% of the gift that’s not covered by EITC as a deduction on my Federal tax return?
A: Yes, the Central PA Scholarship Fund will send you a Federal K-1 so you can claim your Federal deduction.
Q: What’s the legal effect of signing a Joinder?
A: A signed Joinder is not legally binding. When you sign a Joinder, you are simply reserving space in an LLC to make your EITC gift.
Q: What happens if I sign a Joinder and then find it doesn’t suit me to donate through the EITC program?
A: If this is the case, no need to participate. Just let the Wyndcroft Development Office know that your plans have changed. The Central Pennsylvania Scholarship Fund will then simply reassign those tax credits to the next donor who needs them. But once you send in your check, you have a tax credit that you must use for the tax year in which you made the gift. The credits are "use them or lose them."
Q: Can I apply my EITC credits for State taxes against my estimated quarterly taxes?
A: Yes. Once you have an approved Joinder, you should be able to stop or reduce your estimated tax payments.
Q: If yes to the last question, does my accountant just send in a copy of the K-1 from the LLC as my estimated payment to Pennsylvania?
A: No need. The gift and the EITC tax credit backdate in the PA tax system to the fill year in which you made the gift even if you make your gift on December 31. Once you're in the EITC program, then you do not pay installments, or you pay smaller installments. You just file your K-1 with your PA tax return.
Q: If I can NOT claim EITC tax credits against part of my Pennsylvania estimated quarterly tax payments, how much will I pay in penalties for not paying my State estimated payments on time?
A: The tax credit acts as a payment and eliminates any penalties as long as you have enough tax credits to pay the PA tax you owe. Any penalty would be due only on any additional amount you owe beyond what's covered by the EITC. You would need to make estimated tax payments to offer that additional amount. You apply your EITC credit when you are doing your tax returns for the year that just ended.
Q: So the year in which I actually write the check is also the year in which I get my EITC tax credit?
A: Yes.
Q: I have a matching gift program at work. Will my employer match my EITC gift?
A: Check with your matching gift program administrator. It is possible that your company will match the 10% of your gift that is not covered by the EITC tax credit.
Q: Are capital gains eligible for the EITC?
A: Yes.
Q: How can you protect me and ensure a safe and successful outcome if I sign up to make an EITC gift?
A: The Central Pennsylvania Scholarship Fund has many Special Purpose Entity LLCs that guarantee you a tax credit when you complete a Joinder for any one of them. If there is no space in one LLC, one of the many other LLCs will step in and fulfill your tax credit order. As long as you are an existing donor or a new donor who files a timely Joinder, and you make your donation when the CPS Fund invoices you, it is assured that you have a current year tax credit.
Randy Tarpey, CPA, the president of the Central Pennsylvania Scholarship Fund which partners with us on the EITC program, is always happy to discuss EITC with you or your tax advisor. He can be reached at randytarpey@hksickler.com or (814) 682-9038.
Tami Clark, Executive Director of the Central Pennsylvania Scholarship Fund, at t.clark@hksickler.com or (814) 942-4406 is also happy to speak with you or your tax advisor.