ALEF FAQ
1. How does the Qualified Education Expense tax credit work?
A taxpayer files for approval to re-direct all or a part of his/her Georgia income tax to the ALEF Fund. The taxpayer also designates one or more schools to receive the funds. When the taxpayer files Georgia income tax return, whatever was donated to the ALEF Fund is subtracted from the total amount of taxes owed to the State of Georgia.
2. Who can apply for a tax credit?
Anyone who owes state taxes including people filing singly, married people filing jointly or separately, and corporations as well. Corporations can receive a tax credit for amounts contributed to the ALEF Fund up to 75% of their Georgia income tax liability. Only “C” corporations qualify for the 75% credit under the current law. Shareholders or owners of “S” or other types of corporations are subject to the same limits as individuals.
3. How do I get the forms to fill out?
All forms are available on the ALEF website by clicking on the link “Support the ALEF Fund”.
4. If I itemize my deductions on my federal income tax return, can I take a federal charitable deduction for a contribution to the ALEF Fund?
Yes you may. However, you may have to add the amount of that deduction back into your adjusted gross income figure used on your state income tax return. You should consult your accountant on this.
5. I can’t afford to make this contribution right now. What will happen if I wait a few more months?
Once the $50 million in tax credits are used, you may no longer redirect your taxes and make a donation in that calendar year. The rate at which the credits are being used is increasing exponentially each year so making a donation in the first half of the year is important. Even if you cannot make the full donation for which you’re eligible, you might want to donate what you can, and then file for approval a second time and donate again.
6 .I can’t afford to make this contribution right now. Can you hold all of my paperwork, and I’ll let you know when to send it to the Department of Revenue for approval?
You should wait to send your application for approval until you are certain you can make your donation (either by check or credit card) within 30 days of being approved by the state.
7. Do I have to donate the full amount allowed?
You may donate as little or as much as you want up to the following limits: $2,500 for a married couple filing jointly, $1,250 for married people filing separately, and $1,000 for an individual filing singly. C corporations can donate up to 75% of their total state tax liability.
8. What forms of payment does the ALEF Fund take for donations?
The ALEF Fund takes checks and credit cards.
9. I don't have the money to make a $2,500 payment. What other options do I have?
You have the option of making a donation of any amount you can afford. You may then file for approval again and make an additional donation. As long as tax credits are available, you may continue filing for approval and making donations. You may also use a credit card to make your donation. Lastly, some taxpayers have lowered their state tax withholding and saved the additional funds not taken out of their paychecks until they have sufficient funds to make a $2,500 donation. They then raise their state tax withholding to the previous level. To do this, you must be sure that you owe at least $2,500 in state taxes. Please consult with your accountant first.
10. Can I send you all my completed documents now and give you a check or credit card number at a later date?
Yes, as long as your donation is made within 30 days of being approved by the Department of Revenue.
11. I received my form pre-filled out by the ALEF Fund and the information is incorrect. Can you please update it and change the information and send me another one?
We are happy to make the corrections and resend the form to you. Please contact us by e-mail or phone at info@aleffund.org or 404-870-1635 to give us the corrected information.
12. If I redirect my taxes to a particular school, can I designate what student in that school will receive my donation? Can I direct the money to my student?
No. In order to ensure that students most in need receive scholarships, the school’s financial aid committee works with the ALEF Fund to make all scholarship decisions.
13. Can I postdate my check when I send it?
We only accept checks that are dated on the date on which the check is written. We can hold the check before depositing it for up to 30 days after receiving approval from the Department of Revenue.
14. Who do I make the donation check out to and where do I send it?
Make checks out to the ALEF Fund, 1440 Spring St. NW, Atlanta, GA 30309.
15. How long will it take to get an acknowledgment letter and confirmation form after making my donation?
It should take no longer than two weeks to receive the letter and form.
16. Is there an age or other restriction on who can participate in this program?
There are no age restrictions on who can participate in this program. As long as you owe state taxes, you can file to redirect your taxes.
17. What schools are participating in the ALEF Fund?
Click here to see the list of participating schools.
18. How do I designate part of my money to schools not on the ALEF participating schools list?
On the ALEF Donor Designation Form, you may write in the name of another school and the amount of the funds you would like to designate to that school. Those funds will be transferred in their entirety to the SSO serving that school. Currently, you may not designate monies to a school not participating in an SSO.
19. Does this replace my annual fund gift to the school?
Absolutely not. This is different than a charitable donation; it is a redirection of your state taxes. If you choose not to redirect your taxes to the ALEF Fund, you must still pay them to the state of Georgia.
20. Do I have to have a child attend a particular school for it to receive this money?
No. There is no requirement that your child attend a Jewish day school or that you have children attending school at all. You may make your donation to any school you choose that participates in an SSO.
21. Is this a donation to the school?
Your ALEF Fund donation goes towards a scholarship for a student who would like to attend a particular school, and is awarded directly to the child’s family.
22. What if I have already made an annual or other donation to a school?
Remember, this is not strictly a donation. Charitable donations are completely voluntary while contributing to the ALEF Fund is a redirection of state taxes that you are obligated to pay. If you choose not to redirect your taxes to the ALEF Fund, you must still pay them to the state of Georgia.
23. How do I take the deduction on my tax return?
You should consult with your accountant to ensure you are filing the appropriate paperwork. You must include a copy of the IT-QEE-TP1 and the IT-QEE-SSO1 which either the State of Georgia or the ALEF Fund will supply.