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How does the Pennsylvania EITC tax credit work for individual taxpayers filing in Pennsylvania?

Education Tax Credit State Income Tax Pennsylvania state tax credit
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Randy Tarpey
A Pennsylvania individual can redirect their joint Pennsylvania tax liability to local schools and charities who provide scholarships to kids age 3 to age 18. An individual can request a Pennsylvania EITC award through their business or through a Special Purpose Entity LLC. Once the PA EITC tax credit is awarded then the individual or business has 60 days to make a contribution to a qualified EITC charity which uses the donation to fund scholarships or educational grants to K-12 children or preschool scholarships. The Pennsylvania donor receives a 90% tax credit for their donation provided they make a two year commitment. The donor also typically receives federal tax benefits that eliminate the donors cost of the donation other than the wait for the extra tax refunds. The EITC tax credit is a use it or lose it credit so picking a donation lower than your Pennsylvania joint annual personal tax liability will maximize the benefit of the donation. Many other states like Florida, Arizona and, Georgia have similar programs. More information about the Pennsylvania tax credit can be obtained from this volunteer charity. www.pennsylvaniaeitc.org
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