Opening Doors for Children Children’s Tuition Fund July 2017 | Liberty Christian Academy

Will You Leave a Legacy?

Virginia Education Tax Credit Program LCA IS NOW AN APPROVED FOUNDATION! LCA may now receive and administer tax-credit eligible donations as a qualified scholarship foundation under the Education Improvement Scholarships Tax Credits Program (LCA no longer falls under the auspice of ACSI to receive tax-credit donations). The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

Virginia Education Tax Credit Program LCA TUITION ASSISTANCE (TA) DATA: 2017-18 TA Requests: $632,000 Number of families at LCA: 1,155 2017-18 Awarded: $180,430.60 Tax Credit Awarded (through ACSI since 13-14): $92,000 The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

Virginia Education Tax Credit Program What is it? Virginia’s Education Improvement Scholarship Tax Credit Program (EISTCP) provides increased access to private schools for Virginia’s school-age children. It offers a 65% state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship organizations that, in turn, provide private school scholarships for qualifying students. The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

Donor Benefits Individuals and Businesses in Virginia Can Take Part Apply 65% of gift value against taxes owed in a giving year. Receive a charitable giving receipt and take a deduction against their net income as a charitable donation on both federal and state income taxes in a giving year (credit is nontransferable). Businesses can claim credit against Individuals can claim credit against Corporate Income Taxes Personal Income Taxes Virginia Bank Franchise Tax Virginia Insurance Premiums License Tax Virginia Public Service Corporations Tax Personal Income Taxes via pass-thru from S-corporations

Impact of Scholarship Tax Credit Individuals (Married, filing jointly) No Contribution Contribution Income before contribution $100,000 $1,000 Taxable Income $99,000 Virginia Taxes Virginia Personal Tax Rate (5.75%) $5,750 $5,692 VA Personal Tax Savings $58 Virginia Scholarship Tax Credit $650 Total VA Tax Savings $708 Federal Taxes: Income Less state tax deduction $5,042 Federal Taxable income $94,250 $93,958 Federal taxes (25% marginal Rate) $23,562 $23,489 Federal Tax Savings $73 Total Tax Savings $781 Net cost to contribute $1,000 $219 Please consult with your tax professional to ensure you are following the appropriate procedure.

Impact of Scholarship Tax Credit Corporations No Contribution Contribution Income before contribution $1,000,000 $10,000 Taxable Income $990,000 Virginia Taxes Virginia Corporate Tax Rate (6%) $60,000 $59,400 VA Corporate Tax Savings $600 Virginia Scholarship Tax Credit $6,500 Total VA Tax Savings $7,100 Federal Taxes: Income Less state tax deduction $52,900 Federal Taxable income $940,000 $937,100 Federal taxes (34% marginal Rate) $319,600 $328,614 Federal Tax Savings $986 Total Tax Savings $8,086 Net cost to contribute $10,000 $1,914 Please consult with your tax professional to ensure you are following the appropriate procedure.

Student Requirements To be eligible for a scholarship, a student must meet one of the following requirements . . . have attended a Virginia public school the prior year be eligible to enter kindergarten or first grade not have been a resident of Virginia during the preceding year be a prior recipient of a scholarship foundation scholarship Students must have a family income of less than 300 % of poverty levels or, in the case of students with a disability, a family income of less then 400% of poverty levels.

2015 Poverty Guidelines Persons in Family/Household 300% of Poverty Guidelines 400% of Poverty Guidelines 1 $35,310 $47,080 2 $47,790 $63,270 3 $60,270 $80,360 4 $72,750 $97,000 5 $85,230 $113,640 6 $97,710 $130,280 7 $110,190 $146,920 8 $122,670 $163,560

How to Qualify for EISTCP Tax Credits Individuals must give a minimum of $500 but may give as much as $125,000 a year. There are no limits for businesses, including sole proprietors. Donors must comply with the EISTCP approved and established process.

Leave a Legacy!

Individuals and business seeking to make a donation… All you have to do is contact us! Nicole Miller LCA Accountant vnmiller@liberty.edu 434-832-2079