This is a really exceptional opportunity for anyone who pays Ohio taxes.
Ohio taxpayers can get a dollar-for-dollar tax credit of up to $750 per taxpayer ($1500 for couples filing jointly) when they make a donation to a Scholarship Granting Organization (SGO).
What’s more, as of a law passed in 2023, taxpayers can make the qualifying donation before April 15 of the following year to get the credit applied to the previous tax year’s state tax liability.
If you feel like you’re getting crossed up trying to figure it out, let me try to clarify…
So that means as you’re doing your 2024 Ohio state taxes, determine what your 2024 tax liability is, but don’t file immediately. You have until April 15 to make a donation to an SGO of whatever amount you wish to give. Then before you file your 2024 taxes, include the amount of your qualifying donation and you will receive that credit off of your liability. Then it will come back to you in your refund.
Important clarifications:
- Think: This applies to money you already owe to the state of Ohio. If your employer withholds taxes, it applies to the money they withheld and paid to the state on your behalf. That means this money is already claimed by the state, but they give you the option to direct it, via an SGO, to a school rather than just into the state’s coffers.
- You have to make the donation upfront, and then report the donation on line 15 of your Ohio State tax filing. The amount of your credit will then be included in whatever refund is coming to you. So if you had a 2024 tax liability of $450, you could donate $450 to OCEN, and then $450 will be added to your refund.
- If your tax liability is $450 and you donate more than $450, 100 percent of your donation will still come to Hilltop for scholarships, but you can only claim $450 worth of tax credit, and thus will receive only $450 in your refund.
- This is only available to Ohio taxpayers, and it only applies to Ohio state tax liability, not your federal tax liability.
I’ll share that link one more time so you can take advantage of this fantastic opportunity: