PEACH Education Tax Credit FAQs
- How does the PEACH Education Tax Credit work?
Georgia taxpayers interested in supporting public education may apply to be pre-approved by the Georgia Department of Revenue (DOR) for the PEACH Education Tax Credit. There are limited tax credits available each year ($5 million for 2023), so all interested taxpayers must submit a 2023 tax credit application to the Georgia Foundation for Public Education (GFPE) before making their donation. GFPE will handle the rest and remind you when additional action is required. For instructions on how to apply for the PEACH Education Tax Credit, click here.
- What are the maximum amounts that individuals and businesses can contribute to GFPE in exchange for a PEACH Education qualified tax credit?
Individuals and businesses may contribute up to the following amounts each calendar year, until the annual cap on available education expense credits is reached:
- Single Individual or Head of Household: UP TO $1,000
- Married couple filing separate: UP TO $1,250
- Married couple filing jointly: UP TO $2,500
- S Corporation Shareholder, LLC Member or Partnership Partner: UP TO $10,000
- Corporation or Fiduciary Taxpayer: UP TO 75% of annual Georgia income tax liability
- NEW Opportunity (starting in 2022): S corporation, LLC, or partnership that elects to pay tax at the entity level – up to 75% of Georgia income tax liability
- Do I have to submit a tax credit application for the full amount allowed?
No. In fact you may apply for any amount up to the maximum amount available for your respective tax category. However, if you request and are approved for an amount greater than the amount you actually contribute, the remaining amount you requested is not made available to other taxpayers. For example, if you request and are approved for $1,000 and only contribute $500, the remaining $500 is lost from the available tax credit dollars for that year.
- What forms of payment does GFPE take for donations?
GFPE accepts checks, credit card payments, payment via ACH, or stock donations.
- Are there any restrictions on who can participate in this program?
No. As long as you pay state income taxes, you can apply to redirect your state income taxes to GFPE for the PEACH Education tax credit.
- How does a tax credit differ from a deduction?
A tax credit reduces the amount of taxes you owe, dollar for dollar. For example, if you qualify for a $1,000 tax credit and owe $3,000 in taxes, the credit reduces your tax payment by $1,000. Tax deductions lower your taxable income for the year.
- How do I determine my potential Georgia income tax liability?
If your income and deductions will not change much from the prior year, you can look at your Georgia income tax return (Form 500) for your income tax liability for the prior tax year and estimate your tax liability accordingly. However, all tax situations are different and you should consult your accountant or other tax professional for the best estimate of your upcoming Georgia income tax liability.
- Will this trigger an audit of my return?
No. The credit is preapproved by the state of Georgia and authorized through the state legislature. GFPE has a solid line of communication with DOR officials responsible for administration of the PEACH Education tax credit and works closely with them to ensure the fair and responsive administration of this program.
- If I redirect some of my Georgia income tax payment to PEACH, can I designate that it be used to support a specific school or school district?
All funds donated to GFPE through the PEACH Education Tax Credit are used to support innovation in public schools across the state through a competitive grant application process. If your donation is $10,000 or more, you may direct your donation to a specific school district or school, as long as your child does not attend the school.
- What is the deadline for making contributions that qualify for the tax credit?
Contributions can only be made after receiving pre-approval from the Georgia Department of Revenue. All contributions must be postmarked to GFPE within 60 days of receiving DOR pre-approval unless your pre-approval comes less than 60 days before the end of the calendar year. In that instance, all contributions must be postmarked by Dec. 31 of the applicable year in order to be accepted.
- What if the amount of tax credit for which I have been pre-approved exceeds what I owe in taxes to the state?
The amount of your tax credit cannot exceed the amount of tax you owe to the state. However, for taxpayers who file as single, married filing separate or married filing jointly any unused tax credit may be applied toward your taxes for up to five future years. It cannot be applied against prior years’ taxes.
Taxpayers who contribute to PEACH as "C" corporations, trusts, or other entities cannot carry-forward any PEACH Education tax credits.
- May I paper file my taxes and claim this credit?
No. This tax credit and all other Series 100 credits are only available if you file your taxes electronically.
- Can I designate that my contribution be split between multiple schools?
For taxpayers contributing less than $10,000, designating dollars is not available. For those contributing $10,000 for more, you may direct for your dollars to support one or more schools or school systems, only if your child does not attend the school.
- How long does it usually take to receive pre-approval from the Department of Revenue?
State law requires that the Department of Revenue inform you of your approval within 30 days of receiving the application.
- Can I contribute to the PEACH Education tax credit program if I don't reside in the state of Georgia?
Yes. If you pay Georgia state income taxes you can contribute, even if you do not physically reside in the state of Georgia.
- Is the Georgia Foundation for Public Education a government agency? What is its role?
No. The Georgia Foundation for Public Education is 501(c)3 public charity created to support education excellence in Georgia. It is the nonprofit arm of the Georgia Department of Education. Our funding comes from private donations made by corporations, family foundations and philanthropic minded individuals as well as from the sale of “Educator” and “Support Education” license plates and the PEACH Education Tax Credit. Through competitive grant programs, we invest in meeting pressing needs of schools and districts to ensure student achievement.
- What is GFPE’s tax ID number?
GFPE’s tax ID number (FEIN) is 65-1280229.
