The Ohio General Assembly recently established a program that has opened a new door for supporting tuition assistance to Padua Franciscan High School and Catholic school students in the Diocese of Cleveland. The new program allows donors to choose how they will “spend” up to $750 of their 2023 Ohio income tax liability. Ohioans can now receive a 100% tax credit against Ohio income tax liability for cash contributions by December 31, 2023, to a certified Scholarship Granting Organizations (SGO) that grant scholarships to students.
Padua has partnered with The Catholic Community Foundation who has established an SGO, called the Angel Scholarship Fund, to accept donations that qualify for this state of Ohio scholarship tax credit. Contributors to the Angel Scholarship Fund will have the option to make a designated contribution to benefit students at a specific Catholic school such as Padua Franciscan.
The maximum credit amount is currently $750 (if you file Married Filing Jointly, you can receive a credit for up to $1,500, but each spouse must make an individual donation of $750). You will claim this credit when you file your state income tax return. Your Angel Fund tax credit will be applied to your tax liability prior to payroll withholdings and estimated payments and the nonrefundable credit will reduce your state tax liability (the amount you owe in taxes). In other words, the state of Ohio allows you to “spend” some of the state income taxes you must pay anyway to provide tuition assistance for students seeking an education at Padua. The Angel Scholarship Fund is a win-win-win for taxpayer donors, scholarship recipients, and our school.
Please note: A non-refundable tax credit limits your tax benefit to no more than what you owe in taxes. The amount of the tax credit you can claim is equal to 100% of the amount you donate up to $750 per taxpayer. If you do not have a state tax liability, you will not receive a tax benefit from this donation.
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*As always, contact your tax advisor when considering charitable donations.