As many of us prepare for back-to-school season, we wanted to send a reminder that Ohioans donating money to scholarship-granting organizations (SGOs) are eligible to receive a nonrefundable, dollar-for-dollar tax credit up to $750 (or $1,500 for married couples filing jointly*). The credit is limited either by your total Ohio state income tax liability or the amount donated. In some situations, donations also may qualify as a charitable contribution for federal income tax purposes.
SGOs are nonprofit organizations that provide private or parochial school scholarships to K-12 students in need. This tax-credit scholarship program began in 2021, and there are currently 60 certified SGOs in Ohio.
Please note: You must obtain a tax credit receipt from the SGO and provide it to us to submit with your tax return.
*The credit is up to $750 (individual) or $1,500 (married filing jointly). If you file a joint return, each taxpayer will need to make their own $750 contribution to claim the maximum tax credit of $1,500. The credit also is limited to your total Ohio state income tax due for the 2023 tax year. Example: If a married couple owes at least $1,500 of Ohio state tax, they can make qualifying contributions of $750 each at no net cost to them. The donor sends money to the SGO and receives a tax credit from the State of Ohio, which lowers the donors’ tax due by $1,500 (in this example).