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Anyone here use the Tuition Donation Credit in LA? Seems like an excellent program
Posted on 11/30/23 at 6:49 am
Posted on 11/30/23 at 6:49 am
LA Department of Education FAQ
Quick example - you anticipate a $10,000 LA tax liability. You write a check for $10,000 to one of a few LA school choice scholarship programs and get a 95% or more state tax credit. That $9,500 credit leaves you with only a $500 state tax liability.
Your money goes directly to a cause that is important to you, presumably, and not to the state for waste.
Also, from what I can tell, it looks like you can donate appreciated stock in-kind to some of the programs and still take the credit, so you don’t have to realize gains in the stock.
I plan on doing it this year with the ACE program. You can also specifically list a minimum of 3 schools that accept ACE scholarships where your money must be used.
ACE Program Booklet
Quick example - you anticipate a $10,000 LA tax liability. You write a check for $10,000 to one of a few LA school choice scholarship programs and get a 95% or more state tax credit. That $9,500 credit leaves you with only a $500 state tax liability.
Your money goes directly to a cause that is important to you, presumably, and not to the state for waste.
Also, from what I can tell, it looks like you can donate appreciated stock in-kind to some of the programs and still take the credit, so you don’t have to realize gains in the stock.
I plan on doing it this year with the ACE program. You can also specifically list a minimum of 3 schools that accept ACE scholarships where your money must be used.
ACE Program Booklet
5
Posted on 11/30/23 at 7:57 am to slackster
I agree - seems great. I was surprised I had not heard about it so I held off thinking I was missing something.
Posted on 11/30/23 at 2:03 pm to slackster
quote:So instead of paying $10,000 you end up paying $10,500?
Quick example - you anticipate a $10,000 LA tax liability. You write a check for $10,000 to one of a few LA school choice scholarship programs and get a 95% or more state tax credit. That $9,500 credit leaves you with only a $500 state tax liability.
So it would cost me an extra $500 to feel good about a $9,500 donation?
I'm not sure I could feel that good about it...
Posted on 11/30/23 at 3:02 pm to LSURussian
quote:
So instead of paying $10,000 you end up paying $10,500?
So it would cost me an extra $500 to feel good about a $9,500 donation?
I'm not sure I could feel that good about it...
I believe that you write a $9500 check to the ACE Program, then your tax liability is $500 to the state. I heard about it a few years ago (the kids' school participates in this program), but have never contributed before.
Posted on 11/30/23 at 3:37 pm to LSUGUMBO
quote:That would make more sense, not that the state of Louisiana has "making more sense" a goal, than paying more than the tax obligation. Thanks.
I believe that you write a $9500 check to the ACE Program, then your tax liability is $500 to the state.
Posted on 11/30/23 at 4:49 pm to LSURussian
quote:
So instead of paying $10,000 you end up paying $10,500? So it would cost me an extra $500 to feel good about a $9,500 donation?
Yes, but using appreciated stock can lessen or even eliminate that burden on a net basis.
If you use cash you’re going to pay ACE $10,000 then $500 to the state.
This post was edited on 11/30/23 at 4:50 pm
Posted on 11/30/23 at 5:36 pm to slackster
Well considering Louisiana is about last in education I’m not so sure they would use my money any wiser than the state. Either way still giving your money away and not seeing any benefit
Posted on 11/30/23 at 5:48 pm to DaBeerz
quote:
Well considering Louisiana is about last in education I’m not so sure they would use my money any wiser than the state. Either way still giving your money away and not seeing any benefit
To each their own, but these programs get kids out of public schools and into private schools where their success rate is much higher.
More specifically, it requires parents to still pay some tuition, so it essentially screens for lower income families that are willing to sacrifice for better schooling but simply cannot afford the entire tuition payment.
Posted on 11/30/23 at 6:26 pm to slackster
this sounds like something I would completely frick up and end up paying more money
Posted on 11/30/23 at 6:37 pm to jamiegla1
Posted on 11/30/23 at 7:24 pm to slackster
I do and have for several years.
Posted on 11/30/23 at 8:32 pm to I B Freeman
quote:
do and have for several years.
Am I missing anything? Is there a particularly lucrative way to do it other than appreciated stock?
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