Most businesses and individuals file their taxes between February 1 and April 15 with the IRS and PA. During this time tax accountants give their clients quarterly coupons to prepay 2024 taxes. The PA estimated payments for individuals are due April 15, June 15, September 15 and January 15.
SPE and EITC Opportunities
Individuals have the opportunity to pay PA estimated taxes for 2024 by donating to an SPE and receiving PA EITC tax credits. Faced with 4 $2,500 estimated coupon checks to PA for 2024. The opportunity is to toss those coupons in the trash and complete a $11,000 SPE EITC joinder. Tami Clark Executive Director of Central Pennsylvania Scholarship Fund will bill you or your business for the $11,000 contribution. You can select the school for this contribution and 100% of this donation will go to scholarships for kids and real families in your community in a PA PreK to 12th grade school that charges tuition.
Tax Accountant Tool
Why not put a joinder form in your client's tax folder? A donation goes to a real family in your community and the EITC donation covers the PA taxes due for the current tax year. The only current limitation for the EITC SPE program is the requirement of a $3,500 donation so any client that has an annual estimated tax obligation of more than $3,500 can participate in the SPE (special purpose entity) EITC donation program.
Reenrollment for school year 2024/2025 is right around the corner. Joinders distributed to donors to take to their accountant at tax time can turn into scholarships for the next school year for returning students or new students to your school.
2024 is a rare opportunity for new donors to participate in the SPE (special purpose entity) program. Due to the increase in available EITC tax credits and the delay in refunds more EITC credits are available in 2024 than any other year of the EITC tax credit program. There are few wait lists and lots of new opportunities for schools to expand their EITC program. This opportunity will end going into 2025. Wait lists will return and EITC tax credits will get rare again. Using SPE EITC tax credits for estimated payments avoids the refund issue. Most donors will have small or no refunds when they use this program to pay their estimated taxes to PA via the PA SPE EITC program.
Thank you to schools and donors and accountants
Thank you for all your support. The Central Pennsylvania Scholarship Fund would not exist without all the volunteers who help us obtain donors, complete joinders, send donation checks, request scholarships and help us expand this wonderful SPE EITC tax credit program.