Why do this?
An individual makes a two-year commitment and receives a PA tax credit equal to 90% of their contribution. Does that mean that you have an extra 10% cost? Not necessarily. Making a contribution to the EITC program in lieu of paying state income taxes can also reduce your federal income taxes if you are subject to the federal Alternative Minimum Tax ("AMT"). In that case, the sum of the 90% PA tax credit with the federal AMT tax reduction can exceed the contribution. Yes, that's right.
You need to be an employee, shareholder, partner or member of a business firm (this excludes nonprofits and government employees). Your individual participation is not conditional on participation of your business, although both are eligible. In addition, you need to meet one of the two following tests:
You will not be required to provide any personal financial information. You will simply check a box indicating that you meet one of these tests.
How do I participate?
Sisterson is teaming up with a group of volunteer PA CPAs to make this a simple process. How does it work?
It's not every day that a program exists to reduce your taxes and to support the advancement of education. PA has such a program and it's a win/win.
Contact Bill Richardson at 412.594.7708 or firstname.lastname@example.org with questions.