INVEST IN KIDS ACT  

Why pay taxes to Illinois, when you can get a state tax credit by making a donation to Guerin Prep? What is it?

This new Illinois Tax Credit Scholarship program allows individuals to donate to Scholarship Granting Organizations (SGOs) and receive a tax credit for their IL state taxes in return. An SGO is a 501©(3) non-profit organization, approved by the state of IL Department of Revenue, whose primary aim is to grant scholarships to qualifying Illinois grammar school and high school students, allowing them to attend a private school in the state of Illinois. Guerin Prep has chosen Empower Illinois SGO and the Big Shoulders Fund SGO as the primary Scholarship Granting Organizations to receive donations. 

SCHOLARSHIP INFORMATION

WHO BENEFITS FROM THE SCHOLARSHIPS AT GUERIN PREP?

Scholarship amounts will vary based on the student’s household income and be limited to the lower of actual tuition and fees for the student’s school, or the statewide average expense per student among public schools (currently $12,280).

  • Students from households that are lower than 185 percent of the federal poverty level receive 100 percent of tuition and eligible fees, dependent upon the funds received by the state.
  • Students from households that are 185 percent to 250 percent of the federal poverty level will receive 75 percent of tuition and eligible fees through the scholarships, dependent upon the funds received by the state.
  • Students from households that are 250 percent to 300 percent of the federal poverty level will receive 50 percent of tuition and eligible fees through the scholarships, dependent upon the funds received by the state.

DONOR INFORMATION


WHAT IS THE BENEFIT TO A GUERIN PREP DONOR WHO LIVES IN ILLINOIS?

An individual donor will receive a 75% of their fulfilled pledge to a qualified SGO, once a tax credit has been reserved through the process set up by the Illinois Department of Revenue, beginning January 1, 2019. See MyTax.Illinois.gov. For example: If the donor commits to $1,000 on or after January 1, 2019, they will receive a Tax Credit Certificate of $750 for the 2019 tax year within 30 days of fulfilling their commitment.

  • Individual donors can direct their donations to Guerin College Prep HS through Empower Illinois SGO or the Big Shoulders Fund SGO.
  • The credit is non-refundable, but can be carried forward for five years (through 2022)
  • Donors are prohibited from receiving a federal tax deduction for these donations
The IL Tax Credit Scholarship Program (Invest In Kids Act) has a cap of $100 million in donations in 2019


WHAT IS THE PROCESS FOR A GUERIN DONOR?
 STEP ONE: STEP TWO:  STEP THREE: REMINDER:

TAX CREDIT RESERVATIONS ARE AVAILABLE UNTIL THE $100 MILLION DONATION CAP HAS BEEN REACHED: You should activate your MyTax Illinois account AS SOON AS POSSIBLE. To do this, you will need to obtain an individual “Letter ID” from the Illinois Department of Revenue (IDOR), this may take up to 8 days to receive in the mail from IDOR. To activate your account you should click the “Sign up Now” button on MyTax.Illinois.Gov and follow the prompts. You will need your Letter ID, the primary taxpayer’s SSN and either your Illinois Driver’s License Number OR Illinois state ID number OR Adjusted Gross Income from 2016. Using your information, you will be able to look up your “IL-PIN”. Use your IL-Pin and Letter ID, you should be able to set up your username and password and activate your account.

UNTIL THE TAX CREDITS ARE EXHAUSTED, taxpayers in Illinois will be able to reserve a tax credit on the IDOR website – MyTax.Illinois.gov
To reserve your tax credit, you will need to designate Region 1 (Cook County), and we encourage you to choose the Empower Illinois SGO or the Big Shoulders Fund SGO to receive your eventual contribution within 60 days of your commitment. While making your tax credit reservation, the state will NOT ask you for the high school name. You can designate Guerin College Prep HS when you go to the SGO website to make your pledge contribution.
After a donor reserves their tax credit, they will have 60 days to donate the amount they reserved to the Scholarship Granting Organization. Guerin Prep strongly encourages you to choose Empower Illinois SGO or Big Shoulders Fund SGO to make your contribution. If a donor reserves a tax credit, and then does not donate OR gives less than they indicated to the IDOR, they will NOT receive ANY tax credit. Tax Credits will be available on a first-come first-served basis beginning January 1, 2019 and will extend until the tax credits are exhausted. 



 

 Read full instructions - Activate Your Account 


WHEN CAN I SUBMIT AN APPLICATION TO BE APPROVED FOR THE TAX CREDIT?

The tax credit application will be available through MyTax Illinois on January 1, 2019 and tax credits will be awarded on a first-come, first served basis. Approved credits may be taken, beginning with the filing of your 2018 income tax return.


WHAT DO I NEED IN ORDER TO CLAIM MY TAX CREDIT?

Once approved, taxpayers are issued a Contribution Authorization Certificate (CAC) by the IL Department of Revenue. Within 60 days, you must provide a copy of this CAC, along with your full contribution to the SGO. The SGO will then issue you a Certificate of Receipt (COR) within 30 days of receiving your contribution.


WHAT IF I DON’T NEED ALL OF MY TAX CREDIT?

Any credit amount that exceeds your tax liability for the year may be carried forward and applied to your tax liability in the subsequent five taxable years. Credits are applied to the earliest year from which there is a tax liability. Credit cannot be carried back to a prior tax year.