School Tuition Organization
of SOUTHEAST IOWA

How the Credit Works

Donors to the STO of Southeast Iowa receive a 75% Iowa tax credit instead of an Iowa tax deduction. The credit reduces a donor's Iowa tax by 75% of the amount contributed. Contrast this with a deduction which would reduce Iowa tax by less than 9% of the amount contributed.

Do the Math

For example, a donor who will owe Iowa tax of $1,000 gives the STO a $1,000 contribution. That donor receives a $750 credit against his Iowa tax liability and now owes only $250. In addition, the donor can also claim 25% of his contribution or $250 as a charitable donation on his federal tax return if he itemizes deductions.

Consult a tax professional to see how the STO Tax Credit would apply in your specific tax situation.

When to Make Your Gift

The STO of Southeast Iowa has been authorized by the State of Iowa to receive contributions "; print "of up to $$index_TotalAmount in calendar year $index_CurrentYear. We typically meet our contribution goal by late "; ?> November of each year. For this reason, if you want to take advantage of this opportunity, we encourage you to make your contribution as early in the year as possible. Your gift can be restricted to one or more of the schools we serve.