RE-DIRECT AND RE-INVEST YOUR PERSONAL TAXES
How to Qualify
This is an option if you work for a business that pays PA business taxes AND if you meet at least one of the two personal income criteria below:
- Individual income exceeds $200,000 in each of the two most recent years, or joint income together with a spouse exceeds $300,000 in each of those years (In addition, income of at least $200,000 this year or joint income with a spouse of at least $300,000 is expected this year).
- Individual net worth or join net worth together with a spouse exceeds $1,000,000.
Individual Tax Credits
Just a portion of your tax credits can provide an education to a Crossroads scholar. For example:
- Sample donation — $10,000 Dollar-for-Dollar PA tax credit with a 2-year commitment — $9,000 Estimated Net Federal Tax reduction based on 35% tax rate — $350 Estimated cost to you — $650.
- Every $11,000 provided through EITC and OSTC funding supports a Crossroads scholar for one year. Of all Crossroads scholars, 99% are EITC eligible, and 64% are OSTC eligible.
- Every $11,000 provided through EITC and OSTC funding supports a Crossroads scholar for one year. Of all Crossroads scholars, 99% are EITC eligible, and 64% are OSTC eligable.
- To participate, you need to become a member of the applicable Crossroads Scholarship LLC by signing an agreement for a two-year commitment to fund the LLC.
- Each member must agree to make the same donation amount for two consecutive years to retain the 90% tax credit. 2020 donations can be made through December 31, 2020 and 2021 (2nd-year) donations must be made by November 1, 2021.
- We can help walk you through the entire process and then complete the rest for you!
Information for Accountants
- There is $135 million allocated annually for EITC scholarships and $55 million for the OSTC Program.
- Businesses must complete and submit an EITC and OSTC application annually with the Commonwealth of Pennsylvania to determine if they qualify for credit. All applications are processed on a first-come, first-served basis.
- Tax credits cannot exceed tax liability of a business for a given year for the personal tax liability of the owners.
- Applicants must agree to a two-year commitment and can renew an additional two-year commitment online beginning May 15 of the applicable year.