Is there a September 15 deadline for EITC SPE donors?
In our charity Central Pennsylvania Scholarship Fund (CPSF) our deadline is when we run out of 2018 EITC special purpose entities (SPE’s) tax credits. When we run out of SPE tax credits currently anticipated to be November 2018 we can no longer accept joinders for 2018. For donors it’s wise to turn in completed joinders soon to reserve your 2018 tax credits. The donation check is requested when the DCED award letter arrives in October or November. You will write your donation check in November or December as the award letter allows you time to write your check.
So what’s the September 15th deadline?
On September 15th many donors write Pennsylvania a 2018 estimated tax check. Pennsylvania taxpayers pay taxes either by withholding from paychecks or quarterly estimated payments or both. By completing a 2018 joinder and getting confirmation your joinder is on our reservation list for a donation you can avoid paying your September 15th Pennsylvania estimated tax.
What date is a tax credit posted to for 2018? What about the safe harbor provided by the September 15th payment?
Your EITC donation tax credit will post to your Pennsylvania account as a January 1 payment even though your donation does not occur until November or December. The tax credit covers your safe harbor payment so you don’t have to write a check to Harrisburg on September 15th.
What else does the EITC donation cover?
Once you make your donation you don’t have to pay your December/January 4th Pennsylvania 2018 estimate. You don’t have to pay any estimates in 2019 because you are automatically reserved for a fall EITC donation in 2019. You will get a refund of Pa tax withholding or your 1st and 2nd 2018 estimated payment if your EITC donation is large enough. You also get to pick any K-12 or PreK school in Pennsylvania that charges tuition and they will get 100% of your donation as a scholarship.
So the September 15th EITC SPE deadline applies to me?
Yes you can write your check for taxes to Pennsylvania or by September 15th you can turn in a one page joinder reservation form. Isn’t redirecting your Pennsylvania taxes to the school of your choice and not writing an estimated Pennsylvania check a good reason to fill out your joinder now?