Support Education and Save Taxes
In 2021, the Ohio legislature established a tax credit for individual taxpayers and pass-through entities to claim an Ohio tax credit for financial donations made to an eligible scholarship granting organization (SGO). SGOs must be charitable organizations with 501(c)(3) tax-exempt status, must focus on awards of academic scholarships to primary and secondary school students, and must prioritize awarding scholarships to low-income students.
The credit equals the lesser of $750 or the total amount donated to SGOs during the tax year. If you are filing a joint return and both you and your spouse make eligible donations, each of you can claim this credit (up to $1,500 total).
New in tax year 2023: the credit may also be claimed for donations made on or before the unextended return due date, but the same contribution cannot be used to claim the credit in two tax years.
This nonrefundable Ohio tax credit enables you to receive a dollar-for-dollar credit against your Ohio tax liability. Assuming that you will owe Ohio tax in 2023, it can be a win-win opportunity for you and the many students in our state who need support. All schools must be associated with an SGO that accepts the donation on behalf of the school and its students. A list of SGOs is provided here.
Please reach out to your GBQ team member for more information.