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LEAF

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 501c3 that 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 submit your giving receipt as you file your taxes (see Ohio Revised Code 5747.73). 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. For more information on giving to SGO's, see the Ohio Department of Taxation Scholarship Donation Credit website.

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 bray@legacyknights.org. 

 

 

FAQ's

 

1. What is the credit-eligible amount can I give to LEAF?
Answer: The credit is limited to the amount of state tax owed (up to $750). Couples filing a joint return can each give (up to) $750. They can write separate checks or a single check up to $1500, provided it is drawn on an account in both of their names. Likewise, if they give online using a credit card in a single transaction, the account that backs up the card must be in both of their names.

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:
• If your income and circumstance are the same, refer to last year’s return.
• Refer to the amount of state withholding tax on your pay stub.
• Consult with your accountant or tax preparer.  
 -An individual with taxable income at/below $26,050 (2022 tax season), will not owe state income tax.
 -An individual with more than $26,050 taxable income will owe at least $360.69 (2022 tax season).
 -By the time an individual’s taxable income reaches $40,000, they will owe close to $750 (2022 tax season).

*Go to https://tax.ohio.gov/individual/resources/annual-tax-rates for more information on this year’s tax rates.

3. How does the tax credit work?
Answer: 
1. Donate an amount eligible for the credit by December 31st.
2. In January, you will receive a receipt acknowledging your gift to LEAF. 
3. List the credit and amount donated when you file your Ohio 1040 return in the 
spring.

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 might consider giving 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 liability is $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: Scholarships are awarded each spring to students that are enrolled for the following school year at Legacy Christian Academy at the time that scholarships are being awarded. Scholarships are applied to student tuition the next school year.

8. Can I designate the student who will benefit from my donation to LEAF?
Answer: You cannot choose the recipient. Scholarships are awarded to students enrolled at Legacy Christian Academy with priority given 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. 
 

Hypothetical Examples


Jen started her first full-time job out of college in August, and her taxable income is less than $26,050. She does not reach the threshold that would allow her to donate to LEAF and receive a credit (based on 2022 tax rates).

Steve’s taxable income is slightly more than $26,050. Over the course of the year, Steve has $365 in state tax withheld from his pay. Steve writes LEAF a quarterly check for $90 and takes the $360 credit when he files his state return. The Department of Taxation processes Steve’s return and credits him with the $365 his employer has withheld and paid on his behalf. As well, they credit him for the $360 he donated to LEAF. Steve’s credits of $725 exceed his actual tax liability of $365 by $360. The state mails Steve a refund check in the amount of $360, the same amount he donated to LEAF (based on 2022 tax rates).

Rhonda and Bill are parents of two students at Legacy Christian Academy. Rhonda is a stay home mom and Bill works at Wright Patterson Airforce Base. Bill’s salary is $86,000. Rhonda sends LEAF a check for $1500 from a checking account in both of their names. Bill lists the $1500 credit when he files his Ohio 1040 return the next spring. Bill’s employer has deducted and send the state an amount equal to his tax liability. Ohio refunds Rhonda and Bill $1500, the same amount they donated to LEAF (based on 2022 tax rates).

 

For More Information

Please Contact

Brian Ray

bray@legacyknights.org

 

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