What is the Ohio scholarship tax-credit program?
In 2021, the Ohio General Assembly approved a program that allows Ohio taxpayers to receive a 100% tax credit against Ohio income tax liability for contributions made to a certified Scholarship Granting Organization. The maximum credit amount is $750, or $1,500 if married and filing jointly.
https://tax.ohio.gov/individual/resources/scholarship-donation-credit
https://tax.ohio.gov/individual/resources/scholarship-donation-credit
What is an SGO?
A Scholarship Granting Organization (SGO) is a non-profit 501(c)(3) organization that is approved and certified by the Ohio Attorney General’s Office to receive contributions from donors and grants educational scholarships to eligible students in Ohio.
List of certified SGOs in Ohio:
https://charitable.ohioago.gov/Scholarship-Granting-Organization-Certification/List
How does the tax credit work?
You direct your donation to Cincinnati Islamic School SGO. You will claim this credit when you file your state income tax return.
What is the difference between a tax deduction and a nonrefundable tax credit?
A tax deduction reduces your taxable income. It does not provide a dollar-for-dollar benefit. A tax credit directly reduces the amount you owe in taxes. In the SGO program, each dollar you donate reduces what you owe in taxes by a dollar.
Can I still take my SGO gift as a deduction on my federal taxes?
Your gift to the SGO may be tax deductible if you itemize your deductions. Consult your tax advisor to determine your specific tax situation.
Can my employer match my gift made to Cincinnati Islamic School SGO?
Yes! This is an easy way to double the impact of your gift. Contact your employer for information on how to complete this. You will not receive tax credit for the amount of your company’s matching gift. See if your employer will match your donation! https://doublethedonation.com/matching-gift-search/
How do I know what my Ohio tax liability is?
Either consult your tax professional or review your current state return (1040 IT, line 8c).
Where do I find the Federal poverty level (FPL) table?
Which Islamic Schools will benefit from my donation?
Students enrolled in any Islamic K-12 school in southwest Ohio (Cincy-Dayton) who meet the State criteria for income can benefit from the scholarship.
Will I receive an acknowledgment that my gift qualifies for the SGO?
Yes. You will receive a receipt that states your contribution. Please keep your email donation receipt as your official record. We’ll send it to you upon successful completion of your donation.