Q&A

Q. How does the Pennsylvania Educational Improvement Tax Credit program work?

The Educational Improvement Tax Credit (EITC) program is the only financial vehicle available to redirect a portion of your PA taxes to a tuition-based school.

Q: How do I qualify to make an EITC donation to Bonner & Prendie?

Look on your current PA tax return, line 12. This tells you what your tax liability is for the year (tip: everyone in PA pays 3.07% income tax).  

If your income tax amount is over $1,000, you are eligible to participate and redirect your PA tax to B&P.

Q: What steps do I take to make an EITC donation to B&P?

STEP 1: Determine Your Tax Year 2024 Eligibility and Gift Amount.

Make sure your tax liability is over $1,000 and then decide on the gift amount you’d like to contribute for tax year 2024 (minimum amount is $1,000).

STEP 2: Connect with the Advancement Office.

Reach out to the advancement office to participate or to ask questions by phone (610.259.6012) or email [email protected]

STEP 3: Allow us to introduce you.

Once you decide to participate, B&P will connect you with one of the partnering scholarship organizations.

STEP 4: Work with the Scholarship Organization.

• Collaborate with the scholarship organization to sign an LLC document as directed and send in your contribution check following their instructions.

STEP 5: Complete your tax forms and submit your contribution.

• By February/March of each participating year, the scholarship organization will mail you an IRS-issued K-1 form. The K-1 form ensures that tax liability is appropriately allocated to Bonner & Prendie as you expected. It is then used by you and/or your accountant to help offset your tax liability each year.
• In early 2025, you’ll receive an IRS issued K1 tax form for your 2024 contribution to use when filing your 2024 taxes.
• In September 2025, you’ll contribute (if participating) and work with the scholarship organization. Early in 2026, you’ll again receive an IRS issued K1 form for your 2025 taxes.
•  This can be done for as many years as you are eligible.

Q: Can you give me an example?

• Let’s say your Line 12 (tax liability) is $10,000.
• You decide to donate $5,000 by participating in the EITC program.
• You will write a check for your full donation amount ($5,000) following the scholarship organization’s procedures.
• After filing your taxes and utilizing the K1 form, you’ll receive a tax credit of 90% that you can apply to your tax liability for the next year.
• By using your tax liability amount to provide tuition assistance to students at Bonner & Prendie, the true out-of-pocket cost to you is only $500.
• BONUS – your out-of-pocket expense can be used as a federal deduction.

Reach out today [email protected]