Submitted by Dr. Cary Shaw, Twin Tiers Christian Academy
I was able to join a number of ACSI leaders from across the country at the recent ACSI National Legislative Conference in Washington, DC. We sat in a full day of briefings before visiting legislators the following day. Several bills are being considered that could have significant impact on our schools.
Last December congress passed the Tax Cuts and Jobs Act (TCJA), the biggest tax reform law in more than 30 years. One of the changes was to nearly double the Standard Deduction for Federal Tax Returns (Single - $6,350 in 2017 increases to $12,000 for 2018. Married filing jointly - $12,700 in 2017 increases to $24,000 in 2018). A potential unintended consequence of this change could be that people with moderate incomes will discover that they will receive a larger deduction with the Standard Deduction than if they itemize their deductions. This could have an adverse affect on the motivation to make charitable contributions, which could include contributions to our schools.
The following two bills seek to correct this unintended consequence and would allow for charitable tax deductions to be taken in addition to the Standard Deduction. Please encourage your families to communicate with your Senators and Representatives in Washington and ask them to support:
Universal Charitable Giving Act - S.2123 / HR 3988
Charitable Giving Tax Deduction Act - HR 5771
The following two bills seek to correct this unintended consequence and would allow for charitable tax deductions to be taken in addition to the Standard Deduction. Please encourage your families to communicate with your Senators and Representatives in Washington and ask them to support:
Universal Charitable Giving Act - S.2123 / HR 3988
Charitable Giving Tax Deduction Act - HR 5771
Another bill has been introduced that seeks to encourage charitable deductions to eligible nonprofit organizations that help prepare the nations workforce, which includes organizations that provide scholarships to K-12 students. Please encourage your families to ask their legislators in Washington to support:
USA Workforce Tax Act Credit - HR 5153
Another change from the Tax Cuts and Jobs Act had to do with 529 Savings Plans, which were originally set up to help families with college expenses. The new law, TCJA, now allows 529 funds to pay for tuition to K-12 private and religious schools. However, those funds may not be used for other K-12 related educational expenses, which are eligible college expenses such as housing, educational therapy or support services, computers and other technology, educational software, etc. Nor does it allow funds to be used toward home school expenses.
Please encourage your families to communicate with your legislators in Washington and ask them to support the bill below which would expand the use of 529 Savings Plans for K-12 educational expenses beyond tuition and for home school expenses.
Student Empowerment Act - S.3102 / HR 6674
See link below for finding your members of congress on the govtrack website.
https://www.govtrack.us/congress/members/map
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