Alabama Accountability Act
Dear MSH Families,
You may have heard that MSH is a Scholarship Granting Organization (SGO) and can receive donations to fund school tuition for eligible students zoned for failing schools in our community. The Alabama Accountability Act allows taxpayers to donate a portion of their Alabama state income taxes to qualified SGOs so that economically disadvantaged children and those zoned for failing schools can have an opportunity to receive a quality education to prepare them for a life of success and empowerment. As parents and families invested and steeped in Maria Montessori’s philosophy, you understand that not all children can reach their full potential in the same environment. You may recall that Maria Montessori herself first pioneered her philosophy and method working with economically disadvantaged children in the slums of Rome in 1907. She understood then that in the right environment, all children could surpass the challenges they face whether from poverty or limited physical or mental capacity. The Alabama Accountability Act gives eligible parents and students a choice when it comes to education. Alabama is now one of 16 states in addition to the District of Columbia to offer a school choice program.
If you have questions regarding the Alabama Accountability Act, you can visit the Alabama Department of Revenue’s website.
If you are interested in reserving a portion of your Alabama state income taxes as donation to a qualifying SGO, please see the information below.
Individuals and corporations may receive an Alabama income tax credit equal to 100% of their donation, up to 50% of their tax liability. Corporate donations made by pass-through entities or by financial institutions or insurance companies do not qualify. The cap on individual and corporate donations combined is 25 million annually.
Reserving Tax Credits by Indicating Donations to Scholarship Granting Organizations
- Reserving a tax credit requires the use of the Department’s online portal for taxpayers, My Alabama Taxes. Taxpayers who have not previously set up an account will need to Sign Up for My Alabama Taxes.
When signing up for MAT, individual taxpayers will need to select Individual Income Tax as their account type and then enter their Social Security number along with their Adjusted Gross Income from the prior year’s tax return in order to set up a My Alabama Taxes account.
Taxpayers may use their existing My Alabama Taxes Account to reserve a portion of the available tax credit.
- Once logged into MAT, a taxpayer will need to select SGO Donation from the menu on the left margin of the page and follow a short series of instructions/steps to record their donation and reserve their portion of the credit.
- Individual taxpayers needing assistance with signing up for My Alabama Taxes Account or with reserving a tax credit may call (334) 242-1099 or (334) 353-9770.
- Corporate taxpayers needing assistance with signing up for My Alabama Taxes Account or with reserving a tax credit may call (334) 242-1200.