Financial Planning

It’s Good to Give AND to Receive

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This is especially true for Ohio residents who donate to a Scholarship Granting Organization (SGO) that awards tuition assistance to eligible students with financial-based needs. In return for their donations, donors may get a dollar-for-dollar non-refundable tax credit on their state income tax returns. It’s an opportunity for donors to assist students in need while benefitting themselves.

There is a limit

The maximum donation that qualifies for the tax credit is $750 for an individual. It’s up to $1500 if married and filing jointly. Your tax credit can’t exceed your Ohio tax liability. If you donate $750 and owe the state $500, you won’t be getting a refund. The difference though, can be claimed as charitable giving on the federal tax return.

It’s a Win for Schools

SGO donations provide academic scholarships to students in K through 12, low-income students are prioritized. If you wish to designate your dollars toward one particular school within an SGO organization, you can. If you are looking to take advantage of this credit in 2023, a list of Ohio state-certified SGOs can be found here.1

Beyond Ohio

As of December 2022, there are at least 21 states, including neighboring Indiana, that offer some form of SGO program, which support needs-based students while granting residing donors state income tax relief.

Consult your tax advisor to determine eligibility and explain the details of your intended gift. It can be made anonymously if you prefer. Once made, a gift acknowledgement letter is sent to you. Use that documentation to claim your tax credit when you file your return.

If you have any questions consult your Wealth Management Advisor at Bahl & Gaynor. Just give us a call at 513-287-6100. We stand ready to discuss all aspects of your financial well-being!

The Bahl & Gaynor Team

Investment advisory services provided through Bahl & Gaynor (“B&G”), a federally registered investment adviser under the Investment Advisers Act of 1940. Registration does not imply Information or a certain level of skill or training. More information about B&G can be found by visiting and searching by the adviser’s name. This is prepared for informational purposes only and may not be applicable to your particular situation or need(s). It does not address specific investment objectives. Information in these materials are from sources B&G deems reliable, however we do not attest to their accuracy. No fiduciary relationship exists because of this commentary. Bahl & Gaynor does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.