Question 1

How much do I owe in state tax?

Accepted Answer

Anyone whose taxable income is over $46,100 owes a minimum of $915.07 in state tax. A $750 donation to an SGO would reduce this amount to $165.07. That means $750 of tax money to a scholarship to help a student receive a quality Jewish education and $165.07 remains for the state.
You can use the chart below from the Ohio Department of Taxation to determine your tax liability if you know your Ohio Taxable Income amount. Taxable state income can be found on page 2 of your state income tax return (Ohio IT 1040) line 13 (page 2).

For taxable years beginning in 2022:

Ohio Taxable Income Tax Calculation

Question 2

What if I don't have any Ohio tax liability?

Accepted Answer

Your donation to an Ohio Scholarship Granting Organization would NOT be eligible as an Ohio credit. The full donation may be eligible to take as a deduction on your federal tax return.

Question 3

Who is responsible for recording the taxpayer's contribution?

Accepted Answer

The SGO, Every Child Every Family, is responsible for acknowledging the taxpayer’s contribution. The Scholarship Granting organization will issue a copy of a receipt or other document stating the amount of the contribution, the date, and the organization’s name. The donor must have this document to take the tax credit for the calendar year. If you do not receive your receipt within 24-hours, please reach out toinfo@everychildeveryfamily.org,(mailto:toinfo@everychildeveryfamily.org) do NOT reach out to Ohr Torah Cincinnati.

Question 4

Can my spouse and I receive separate tax credits if we joint file taxes?

Accepted Answer

Yes. The tax credit is on a per-individual taxpayer basis. Married couples can receive up to two separate $ 750 deductions, totaling $1,500. To receive the maximum credit, spouses must make TWO SEPARATE $750 donations, one in each of their names. A single $1,500 will only return a single $750 tax credit.

Question 5

What if I would like to give more than $750?

Accepted Answer

You may do so! In that case, the first $750 will be granted a $750 state tax credit, and the amount of the gift beyond the initial $750 may be claimed as a federal and state tax deduction. Consult with your tax specialist to review your specific tax situation. In the meantime, find more information at: www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions.(http://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions)(https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions)

Question 6

Where can I find details on the law that was passed?

Accepted Answer

House Bill 110 was passed September 2021
Section 5747.73 | Credit for donations to scholarship organizations
https://codes.ohio.gov/ohio-revised-code/section-5747.73(https://codes.ohio.gov/ohio-revised-code/section-5747.73)