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EITC/OSTC
Both individual taxpayers and businesses in Pennsylvania can participate in the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) program to benefit deserving students at Roman Catholic High School. Redirect your PA state tax dollars to Roman to help fund financial aid, and receive a tax credit of 90% of the donation amount with a two-year commitment. For a one-year commitment, you will receive a tax credit of 75% of the donation amount.
Each year, a finite amount of tax credits is made available, and tax credits are awarded to individuals and businesses on a first-come, first-served basis.
It is easy for you or your business to participate! If interested, please see the process below.
SAMPLE DONATIONS
| Donation to Roman Catholic High School | $10,000 |
| PA Tax Credit (90% for 2 Year Pledge) | $9,000 |
| Net Federal Tax Reduction for Contribution (based on 21% Tax Rate) | $210 |
| Out of Pocket Cost | $790 |
| Donation to Roman Catholic High School | $5,000 |
| PA Tax Credit (90% for 2 Year Pledge) | $4,500 |
| Net Federal Tax Reduction for Contribution (based on 21% Tax Rate) | $105 |
| Out of Pocket Cost | $395 |
| Donation to Roman Catholic High School | $1,000 |
| PA Tax Credit (90% for 2 Year Pledge) | $900 |
| Net Federal Tax Reduction for Contribution (based on 21% Tax Rate) | $21 |
| Out of Pocket Cost | $79 |
How to get EITC or OSTC Tax Credit
A gift to Roman Catholic High School can offset your Pennsylvania individual, or business, income tax liability. These tax benefits are not deductions, but direct credits off your tax liability.
The program is available to individuals or businesses who have various sorts of Pennsylvania tax liability. EITC and OSTC tax credits can be used for any of the following tax categories:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Single member of Limited Liability Company (LLC)
- S corporations
- General Partnerships
- Limited Partnerships
- Shareholders, Partners, or Members of S Corporations
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Single member of Limited Liability Company (LLC)
- S corporations
- General Partnerships
- Limited Partnerships
- Shareholders, Partners or Members of S Corporations
Process:
1. Check out your PA-40, line 12, from your most recent tax return to see what your PA tax liability was last year. Assuming your income will not change drastically, that is a good starting point for the maximum level at which you could participate. If you file jointly with a spouse, then your entire PA liability is eligible, not just yours.
2. Let us know how much you would like to contribute.
3. We will connect you with one of our partner scholarship organizations such as BLOCS or the Foundation for Catholic Education depending on your contribution level.
4. Once they approve you, they will assign you the special purpose entity to which you will belong. You will make your check out to that entity, and they will earmark the funds to Roman.
5. In February, the scholarship organization will send you a K1 that you will use when filing your taxes and it will be used to provide either a refund or credit depending upon your tax situation.
6. That's it! Your out-of-pocket cost will have 10x the impact as Roman receives 100% of your donation despite it costing you less than a tenth of the total amount.
If you have any questions or would like to participate, please contact Rick Zambino, Director of Development & Alumni Relations, at (215) 627- 5487, ext. 203, or rzambino@romancatholichs.com.
EITC/OSTC Brochure
Questions? Contact the Office of Mission Advancement
John A. Prendergast '08
Executive Director of Mission Advancement
(215) 627-5487 ext. 204
jprendergast@romancatholichs.com
Rick Zambino
Director of Development & Alumni Relations
(215) 627-5487 ext. 203
rzambino@romancatholichs.com
Dan Joyce
Senior Development Officer
(215) 627-5487 ext. 205
djoyce@romancatholichs.com