The tax credit
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.
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 grant educational scholarships to eligible students in Ohio.
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.
Claiming the credit
Do I need to itemize my taxes to claim the SGO credit?
No.
What do I need to do to claim my donation as a tax credit?
You need to submit your donation receipt at the time of tax filing and inform your tax agent to include it under state tax credits.
How do I check the maximum donation that can come back as an SGO tax credit?
The credit cannot exceed your Ohio income-tax liability for the year. Review the instructions here to estimate your maximum, or ask your tax advisor.
How do I know the maximum eligible donation that can be refunded?
Please review the instructions here.
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 I donate before April 15 and claim the credit 1:1 if I do extended tax filing later?
Yes.
Donating
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.
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.
Can I donate to the SGO from my Donor Advised Fund (DAF) and claim the credit?
No. The State of Ohio doesn’t allow this. Ohio tax credits and their required documentation
Scholarships & eligibility
Where do I find the Federal Poverty Level (FPL) table?
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