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IMPORTANT MESSAGE FOR IOWA INCOME TAX PAYERS WHO LOVE CHRISTIAN EDUCATION!
GIVING DEADLINE IS DECEMBER 31 OR WHEN TAX CREDITS ARE GONE
The Iowa Legislature passed a bill in 2006 which allows a huge tax credit for gifts to an organized group of Christian Schools in order to provide tuition assistance to qualified families. This is a state law so it will continue into the future. Please learn about and utilize this great opportunity. We need to use this program to encourage its growth!
Listed below are things all of us should know and consider:
1. If you gave a gift of $1,000 to LOG STO (Legacy Of Grace School Tuition Org.) before December 31, you would receive a 65% tax credit or $650 off your 2007 Iowa income tax. In addition, you may claim that $1,000 as a deduction if you itemize on your federal income tax. If you are in the 15% tax bracket and itemize on your federal tax return, you could benefit by $150. So, in reality, $800 of your $1,000 gift will come back to you on your federal and state income taxes. If you would choose not to give the $1000, you will pay $150 to the federal gov’t and $50 to the state gov’t for a total of $200 worth of taxes. What you have left is $800, the exact same amount you would get back if you gave the $1000.
2. The moneys that are donated can only be used for tuition assistance. What a great blessing this will be to families who qualify for tuition assistance under this state law. To qualify, a family’s total income must be under three times the poverty level.
3. This organization is called the Legacy of Grace School Tuition Organization (LOG STO). You may contact any of the following member schools or their representative:
·Newton Christian School (641)792-1924 Troy Garton (641)792-9130
·Oskaloosa Christian School (641)672-2174 Amy De Bruin (641)673-5998
·Pella Christian Grade School (641)628-2414 David Jansen (641)621-0229
·Pella Christian High School (641)628-4440 Tim Nikkel (641)628-8747
·Peoria Christian School Russ Fynaardt (641)637-2629
·Sully Christian School (641)594-4180 Dale Van Wyk (641)527-2845
·At large Board member Joel Groenenboom (641)673-6913
4.LOG STO is now allowed to accept both cash and non-cash gifts. The LOG STO has approved acceptance of these non-cash gift: Stocks, Bonds, Corn and Beans. Corn and beans would make excellent gifts because you may also save paying an additional 15% in self employment tax that you would have on a normal grain sale. PLEASE contact one of the above STO representatives listed above before delivery for full details.
5. We want to emphasize that your gifts should not replace the present giving that you do for Christian education. Your new gift to LOG STO will assist in the schools efforts to gain more students. More students equal lower cost. Please consider this a stewardly way to further help lower income families receive a Christian education. THANK YOU!
6. New for 2009. The 65% tax credit is now available to C Corporations.
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