Supporting Families and Children in Lutheran Education
All information on this page is as accurate as possible, but be sure to consult a tax professional for any questions regarding how to file the tax credit. Click here for additional information on how the tax credits will be disbursed.
The goal of the School Tuition Organization (STO) is to raise approximately $1,078,184 for the 2023 calendar year. According to the law, donations can be cash or stock gifts. In addition, in order to qualify for the tax credit, the donor must be an Iowa taxpayer.
To encourage donations, all donations are eligible for a 75% tax credit. The following illustration shows how the tax credit works:
|Tax Credit (75% of the donation)||$750|
|Net Cost of Donation||$250|
The tax credit works as a DIRECT REDUCTION in Iowa state taxes. If the donor in the example above owed $1,000 in state taxes, the tax credit would reduce his tax liability to $250. In addition, 25% of the gift would also be able to be taken as a charitable contribution on federal tax returns. Refer any questions regarding the specifics of tax preparation to a tax professional. The Department of Revenue advises that funds received from a donor advised fund (DAF) do not qualify for the STO tax credit and therefore are not able to be accepted as a gift to ILSTO.
You can make your gifts to the STO in two easy ways:
- Give your gift with a completed Donation Form to your local school, who will forward it to the STO.
- Mail your gift with a completed Donation Form to:
Iowa Lutheran STO
PO Box 176
Terril, IA 51364