During the past several decades, there have been many changes in the educational system in the U.S. Today, the increasing educational demands have pressured the government to develop systems and strategies that can meet these mounting educational needs. In many states, including Pennsylvania, policymakers are encouraging taxpayers to provide the funds needed to meet these educational needs. By motivating taxpayers to contribute to scholarship-granting organizations, eligible students will have the chance to pursue the quality education that they deserve.
While contributing mainly supports funding on education, several benefits to taxpayers come with it.
Tax-Credits
Tax-credits are one of the ways businesses, corporations, and individual taxpayers can get an incentive in return for their contributions to charitable organizations. There are some tax-credits you can claim as an individual taxpayer such as the Individual Tax-Credit PA.
As an individual taxpayer, you can lower your state and federal tax liability through the Individual Tax-Credit PA. The tax-credits equal 90% of the amount you contributed which you can use to lower your state taxes.
This is how it works: you start by joining a special purpose entity (SPE) established to provide educational assistance or scholarships to low-income families using Pennsylvania’s Opportunity Scholarship Tax Credit (OSTC) and the Educational Improvement Tax Credit (EITC). Next, you contribute to the SPE. Finally, the SPE issues you a tax credit which you can then use for your state taxes.
Tax-credit programs such as this also encourage many individuals, especially those who are earning well, to continue doing their business or profession in Pennsylvania. Tax-credits are one of the ways to convince individuals to pay their taxes.
Higher graduation rates
Scholarships allow many eligible students to go to the school of their choice. It increases the chances of them receiving high-quality education which results in higher graduation rates. Students who can pursue higher education will have more chances to get employed in the future. When more people are educated, there are higher chances that these individuals contribute more taxes in the future.
Personal satisfaction
Of course, supporting scholarship granting organizations can give you personal satisfaction. Even though many people will say that contributions only benefit those who receive them, it provides valuable returns to the person who contributed, too. Spending money on others, especially on education, can make you happier and more satisfied with your accomplishments.
Public benefits
When you fund scholarship granting organizations, not only do you get a Personal Tax-Credit PA, but you also improve your community. Every community has its own needs especially in education and when you can help meet those needs, your community can focus on other goals that can improve the lives of everyone else.
Conclusion
Every student deserves a chance at a brighter future. When you contribute, you play a key role in helping at least a single student to achieve his or her dreams. By contributing to a scholarship granting organization, you can get a Personal Tax-Credit PA and a whole lot of benefits as an individual taxpayer.
