Sample Tax Calculation for "S" Corporations Participating in the Educational Improvement Tax Credit These sample tax calculations were updated in 2009 for S-corps contributing through the PA Income Tax.  For additional sample calculations, please contact the REACH office. Example   No Contribution  90% Contribution   Net S-corp income before contribution $310,000  $310,000  EITC Contribution   $0  $10,000  Fed/PA Taxable Income before Adjustments  $310,000  $300,000 PA Personal Income Tax (3.07%)  $9,517   $9,210  PA Personal Tax Savings  $0  $307  EITC Credit available for PA Personal Income Tax  $0  $9,000 Total PA Tax Savings   $0  $9,307       Fed/PA Taxable Income from S-corp before Adjustments   $310,000  $300,000  Add Back: Reduction of State Tax Deduction  $0  $9,307  Net Federal Taxable Income from S-Corp  $310,000 $309,307   Federal Tax from S-corp (assume 35% bracket)  $108,500 $108,257   Federal Tax Savings  $0  $243 Total Tax Savings                               $0                   $9,550 Net Cost to Contribute $10,000                                      $450

Content Last Modified on 2/18/2009 11:24:50 AM