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Support ANCHOR through
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What is the PA EITC Program?
Pennsylvania's Educational Improvement Tax Credit (EITC) program lets individuals and businesses redirect a portion of the state taxes, that they already pay, toward scholarships for Anchor students — at little to no net cost to the donor. It's one of the most powerful ways to support Anchor, because your gift is significantly offset by a state tax credit.
Who Can Participate?
Any individual who has Pennsylvania state income tax withheld from their paycheck throughout the year — totaling $500 or more annually — is eligible to participate. This is based on what's withheld from your paycheck over the course of the year, not on how much you owe (or get refunded) when you file your PA tax return each spring. In other words, if you're a PA employee with state tax coming out of every paycheck, you likely qualify.
Businesses can also participate directly; contact us for details on the business EITC/OSTC process.
Businesses can also participate directly; contact us for details on the business EITC/OSTC process.
how it works
You give the full amount up front — for example, $1,000. In return, Pennsylvania awards you a tax credit for 90% of your gift ($900), which reduces the PA state income tax you owe for the year. If you've had enough PA tax withheld from your paycheck to cover that amount, you'll see the credit reflected on your PA tax return as a bigger refund (or a smaller balance due) — not as a separate check from the state. Combined with the federal deduction on the remaining $100, your true cost on a $1,000 gift can be as little as $100.
Sample Scenario
$1,000 Scholarship Contribution
$900 PA Tax Credit (90% of contribution) (reflected in your refund or balance due when you file)
$100 Net Out-of-Pocket Cost (remaining $100 may also be deducted on federal taxes)
Say you typically have $1,000 in PA state income tax withheld from your paycheck over the year — and in a normal year, you owe nothing more and get nothing back when you file. If you decide to contribute that $1,000 to Anchor through the EITC program:
You still give the full $1,000, up front, to Anchor's scholarship fund. Pennsylvania awards you a $900 tax credit (90%). Because your $1,000 in withholding already covers that credit, you'll see it show up as a $900 refund when you file your PA return — instead of the $0 refund you'd have gotten otherwise. The remaining $100 may also be claimed as a federal charitable deduction.
Net result: your $1,000 gift to Anchor scholarships costs you as little as $100 out of pocket.
Your actual savings depend on your personal PA tax liability for the year. We encourage you to speak with your tax advisor to understand how this applies to you.
Empower Your Money
Turn $100 into a $1,000 scholarship contribution for an Anchor student.
Sample Scenario
$1,000 Scholarship Contribution
$900 PA Tax Credit (90% of contribution) (reflected in your refund or balance due when you file)
$100 Net Out-of-Pocket Cost (remaining $100 may also be deducted on federal taxes)
Say you typically have $1,000 in PA state income tax withheld from your paycheck over the year — and in a normal year, you owe nothing more and get nothing back when you file. If you decide to contribute that $1,000 to Anchor through the EITC program:
You still give the full $1,000, up front, to Anchor's scholarship fund. Pennsylvania awards you a $900 tax credit (90%). Because your $1,000 in withholding already covers that credit, you'll see it show up as a $900 refund when you file your PA return — instead of the $0 refund you'd have gotten otherwise. The remaining $100 may also be claimed as a federal charitable deduction.
Net result: your $1,000 gift to Anchor scholarships costs you as little as $100 out of pocket.
Your actual savings depend on your personal PA tax liability for the year. We encourage you to speak with your tax advisor to understand how this applies to you.
Empower Your Money
Turn $100 into a $1,000 scholarship contribution for an Anchor student.
Ready to get started?
Contact: David Hegedus, ACA Director of Strategic Development, at 717.475.2339 or [email protected]
Contact:
David Hegedus
ACA Director of Strategic Development
717.475.2339 or email him at [email protected]
David Hegedus
ACA Director of Strategic Development
717.475.2339 or email him at [email protected]
Anchor Christian Academy ministers to families of all socioeconomic backgrounds. ACA is incorporated as a nonprofit corporation in Pennsylvania and is recognized by the IRS as a tax-exempt charity under Section 501(c)(3) of the Internal Revenue Code; therefore, gifts to ACA are tax-deductible under IRC Section 170. Your gift supports ACA's educational mission and programs, and ACA retains discretion over how designated donations are used within its designated funds.