Ohio Scholarship Donation Credit

Guest Speaker: Peter Bellini, CPA, BSB Partners, CPA & Business Advisors

Steve: Pete, we’ve recently heard about a unique opportunity for our Ohio clients to make donations to an eligible Scholarship Granting Organization, receiving a tax credit that completely offsets the donation. Sounds too good to be true. Tell me about it.

Pete:

Steve: But I don’t itemize on my Federal Taxes. Does this matter? What’s the difference between a tax deduction and a tax credit?

Pete:

Steve: So how does this work? Can I just send a check to my Alma Mater or any scholarship program? How do I document?

Pete:

Steve: We have many client’s that already make Qualified Charitable Donations from their IRA’s. Can our Ohio clients take advantage of this if they are already making these Qualified Charitable Donations?

Pete:

Steve: Pete, thank you for your insights. This is a wonderful program to allow Ohio residents to support the education for those in need, receiving an offsetting Ohio Tax Credit for no out of pocket costs.

 

Individual taxpayers and pass-through entities can claim a credit for monetary donations made to an eligible scholarship granting organization (SGO). 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). Beginning 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. 

There are more than 59 Scholarship Granting Organizations certified in 2023

 

 

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