California College Access Tax Credit
Under bills SB 174 and SB 798 signed by Gov. Jerry Brown in September 2014, California introduced a creative way to increase funding for the Cal Grant B program, which provides money for books and living expenses to low-income college students. Contributions to the CATC (College Access Tax Credit) Fund are eligible for a federal charitable contribution deduction as well as California tax credit. The amount of the California tax credit for years 2014-2016 is as follows:
60% for contributions during 2014
55% for contributions during 2015
50% for contributions during 2016
Since taxpayers are not allowed a deduction and a credit for the same contribution, any charitable deduction made to the CATC Fund claimed on a taxpayer’s federal income tax return must be added back as a state […]
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