The Pennsylvania Educational Improvement Tax Credit program allows Pennsylvania businesses (LLC’s, S-Corps, C-Corps, Partnerships) and individuals to reduce their PA state tax liability while at the same time providing need-based scholarships to Politz Hebrew Academy students.
EITC QUICK FACTS:
90% PA Tax Credit
You will receive a 90% PA tax credit annually for each of two years. You may also qualify for a chartiable deduction on your federal taxes.
That’s all it takes to apply online and do this special mitzvah for a child.
Do I Qualify?
Business Applicants: Businesses of all sizes that pay PA state taxes may qualify to participate, including LLC’s, S-Corps, C-Corps, and Partnerships.
Individual Applicants: Individuals that pay PA state taxes may qualify to participate through a Special Purpose Entity (SPE). To expedite the process, a Special Purpose Entity has been created on behalf of the Foundation for Jewish Day Schools called PEP (Pennsylvania Education Partnership, LLC). These LLC’s serve as a pass-through for tax dollars to the Jewish day school of your choice.
Politz Hebrew Academy students receive support through these programs. Please partner with us to help send deserving children to Politz.
There is no minimum Pennsylvania annual tax liability or tax credit required of a business participant.
PARNES HAYOM – A DAY OF LEARNING
LIFE INSURANCE POLICY
Another easy way to support Politz Hebrew Academy and leverage your cash donations is to use a life insurance policy to accomplish this goal.
By either gifting a policy outright or naming Politz Hebrew Academy as a beneficiary, you can present Politz with funds to provide a lasting legacy of yours for a Torah institution.
A bequest is a sentence in either your will or trust stating the amount you would like to leave to the charity (Politz Hebrew Academy), identifying an amount, and stating the purpose for which you would like Politz Hebrew Academy to use the funds.
In this case, you can leave the bequest unrestricted; for example Politz can use the funds where they are most needed, or the bequest can be restricted; for example tuition or new programming.
REQUIRED MINIMUM DISTRIBUTION
This information is important for anyone in your family, or friends of your family,
who have reached the age of 72 and have a traditional IRA.
There is a favorable tax law that allows individuals who have reached age 72 to make qualified charitable distributions directly from their individual retirement plans on a tax-free basis.
The Required Minimum Distributions (RMDs), which must be taken annually and are treated as taxable income, can instead be sent to Politz Hebrew Academy as a charitable donation and are excluded from gross income.
This method of giving to Politz will allow individual taxpayers who do not itemize deductions on their personal tax returns (and instead just take the standard deduction) to essentially get the benefit of a charitable deduction!
The key requirements are: that the individual is at least 72, has an individual retirement plan (ex. an IRA, but not a 401(k)), has not yet taken the annual RMD, and the distribution must be made directly from the retirement plan to Politz.
Please pass this material on to those you know who have reached this age.
For more information on this mutually beneficial way to help support Politz Hebrew Academy, please consult your financial advisor or tax professional.