While we continue to discuss taxes during this quarter, an often-overlooked planning opportunity for Georgia residents is what is known as the Georgia GOAL Program. Created in 2008 with the passing of the Education Expense Credit law to enhance opportunities for the state’s children, Georgia GOAL offers increased opportunities for expanding student scholarship organizations or SSOs. What make this program interesting is that Georgia’s individuals and businesses can contribute to the program for a state income tax credit. Some private schools are listed on the program’s website as approved institutions for donations in exchange for a limited number of credits each year. For 2022, that adds up to $100 million and must be approved by the Georgia Department of Revenue.
If you’re considering making a contribution to Georgia GOAL, keep in mind that married couples can direct up to $2,500, married couples filing separately up to $1,250 each, and single filers up to $1,000. In 2022, an S corporation, LLC, or partnership can elect to pay tax at the entity level – up to 75% of Georgia income tax liability. Georgia GOAL is a great way for business owners to directly support k-12 educational opportunities. For example, if a business donates $10,000 through the Georgia GOAL program, the owner will also get a $3,500 state tax credit. Currently, there remains around $13 million in the cap, so there’s still time available to take advantage of these tax credits that not only help your taxes but also help give back to the community.
To learn more and explore the full range of opportunities, visit the Georgia GOAL website here. You can also reach out to your CPA or us at Wiser Wealth Management to discuss participation in the program. The Georgia GOAL Program, hospital grants, movie credits, and Donor Advised Funds are some of the many ways financial planners, along with a team of CPAs, can help clients reduce their taxes throughout the year while also helping them give back to their communities.
Matthews Barnett, CFP®, ChFC®, CLU®
Financial Planning Specialist