Ohio's scholarship donation credit
Ohio taxpayers can claim a state tax credit for donations to an eligible scholarship granting organization (SGO). The credit equals the lesser of $750 or the total amount donated to SGO’s during the tax year.
Legacy Education Affordability Fund (LEAF) is a registered Scholarship Granting Organization (SGO) in the state of Ohio dedicated specifically to funding scholarships for students at Legacy Christian Academy. Ohio law allows each Ohio taxpayer to claim a gift to LEAF as a dollar-for-dollar state tax credit up to $750. Couples filing a joint Ohio tax return may claim a tax credit up to $1500 for a gift to LEAF if they give in separate donations in each partner’s name.
If you will have Ohio tax liability of at least $750 ($1500 for a couple filing jointly), you can give a gift of that amount to LEAF before December 31 and receive it back as a dollar-for-dollar tax credit when you file your taxes. Your gift to LEAF will be used to fund scholarships for Legacy Christian Academy students, prioritizing scholarships for students with the greatest financial need. In this way, you are able to provide scholarships to offset tuition for Legacy Christian Academy students at essentially no cost to you!
Disclaimer: The employees and representatives of Legacy Christian Academy and LEAF are not attorneys or tax professionals. We encourage you to investigate this tax credit further and to seek professional advice.
When you support Legacy Christian Academy through donations to LEAF, you are partnering with us to advance our mission of Equipping Leaders for Christ!
Donate to LEAF online by clicking on “Support LCA Students through LEAF” below. You can also mail a check to LEAF C/O Legacy Christian Academy at 1101 Wesley Avenue, Xenia, OH 45385.
Please direct any questions to Brian Ray at email@example.com.
1. What amount can I give to LEAF and claim a tax credit when I file my Ohio return?
Answer: To receive the credit, you must owe Ohio income tax against which to apply the credit. The credit is limited to the amount of state tax owed (up to $750). The credit equals the lesser of $750 or the total amount donated to SGOs in one tax year. Couples filing a joint return can each give LEAF up to $750 and receive a combined tax credit up to $1500. To receive this larger tax credit they must give two gifts, one in each partner’s name.
2. How can I learn the amount of Ohio income tax I will owe this year?
Answer: There are a few good sources of this information:
- Consult with your accountant or tax preparer.
- Your employer and/or pay stubs are sources of your state income tax withholdings.
- If your income and circumstances are essentially unchanged, consider last year’s return.
3. How does the tax credit work?
Answer: If you give a gift to LEAF for student scholarships, you will receive a receipt in January from LEAF documenting your gift. You may use this receipt when preparing your Ohio tax return to receive a tax credit up to $750 ($1500 for couples filing jointly).
4. What if I want to give to LEAF, but I’m finding it difficult to write a check for several hundred dollars?
Answer: You may give smaller amounts to LEAF throughout the year. You will receive a receipt in January for your total giving.
5. What if I give LEAF $750, but later I learn my state income tax this year is only $600?
Answer: The credit for which you are eligible is limited to the amount of tax owed (in this case $600). LEAF is not able to issue refunds.
6. Can I donate more to LEAF than my actual Ohio income tax liability?
Answer: You may, but the credit for which you are eligible is limited to the lesser of $750 ($1500 for couples filing jointly) or the total amount donated to SGO’s during the tax year.
7. When does LEAF award scholarships?
Answer: LEAF awards scholarships each spring to students enrolled at Legacy Christian Academy. Scholarships will be applied to student tuition the following school year.
8. Can I designate the student or family who will benefit from my donation to LEAF?
Answer: No, you cannot choose the recipient. Funds will be awarded to students who are enrolled at Legacy Christian Academy and priority will be given to the students according to financial need.
9. What are the requirements to be considered for a LEAF Scholarship?
Answer: The requirements are simply to apply and demonstrate financial need.