Ruffing Scholarship Tax Credit Program
We are excited to announce a program created by the State of Ohio where you can turn a portion of your state taxes into scholarship money at Ruffing Montessori School at absolutely NO COST TO YOU! That’s correct, no cost to you — you are simply redirecting a portion of the state tax you would pay anyway to Ruffing Montessori School to use for financial aid.
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 a Montessori education at Ruffing.
What is Ohio’s new Scholarship Tax Credit Program?
Begun in 2021, the Ohio General Assembly established a new program whereby Ohioans can receive a 100% tax credit against Ohio income tax liability for cash contributions to certified organizations that grant scholarships to students (in our case, the Ohio Association of Independent Schools Scholarship Generating Organization or “OAIS SGO”). The maximum credit amount is currently $750 (or $1,500 for married couples if certain requirements are met). This is a dollar-for-dollar tax credit against your tax liability. If you do not pay or owe State of Ohio income taxes, you will not receive the benefit from this program.
Is the amount I claim a tax deduction?
OAIS SGO donors will receive a dollar-for-dollar state tax credit up to the $750 maximum contribution (or $1,500 for married couples if certain requirements are met), which is different from a tax deduction. Tax deductions reduce your taxable income. A tax credit is a dollar-for-dollar credit against the taxes paid to the State of Ohio. The funds are directed to the OAIS SGO rather than the state.
How do I qualify for the tax credit?
Assuming you pay Ohio income taxes (which most people do), to qualify for the tax credit, you must make a monetary donation to the OAIS SGO. The credit amount equals the lesser of $750 or the total amount donated to the OAIS SGO during the tax year. If you are filing a joint return and both you and your spouse make eligible donations, each of you can claim this credit (up to $1500 total).
How does this new program work?
- Follow this link: https://oais.gosgo.co/schools/2949/landing
- Make a donation, being sure to designate “Ruffing Montessori School – Rocky River”;
- Receive a tax receipt from OAIS SGO;
- Use the tax receipt that you receive from OAIS SGO to claim your tax credit when you file your 2022 State of Ohio income tax return for a dollar-for-dollar tax savings. The maximum credit amount is currently $750 (or $1,500 for married couples if certain requirements are met);
- OAIS SGO distributes the funds to Ruffing;
- Ruffing uses the funds as financial aid for its families following certain state mandated protocols.
Who can contribute to the OAIS SGO?
Any Ohio taxpayer, single or married, with an Ohio tax liability.
Is there a cap on the amount I can contribute to the OAIS SGO?
Contributions of any size will be accepted. However, the dollar-for-dollar tax savings is capped at $750 (or $1,500 for married couples if certain requirements are met).
Can matching contributions from employers be made to the OAIS SGO?
Yes! This is a great way to double or triple your contribution. Contact your employer’s human resources or benefits department to verify participation in gift matching.
How does the taxpayer estimate their tax liability for this year?
Taxpayers can contact their tax preparer, or review their previous year’s state tax return; this may help to estimate your state tax liability for the current year against which the credit can be claimed. This is the total of your tax and not necessarily the amount deducted from your paychecks, the amount refunded to you, or the amount due. Call your tax preparer with additional questions or for further assistance.
How does the taxpayer claim the tax credit?
Taxpayers claim the credit when they complete their tax return by writing in their support amount on the designated lines of the Ohio individual income tax return and attaching their tax receipt from OAIS SGO. If you do not have a tax liability to the State of Ohio, no benefit will be received. See attached page from Ohio IT-1040 for an example.
Does the OAIS SGO submit my contribution information to the State of Ohio or the IRS?
No. OAIS SGO does not submit your contribution information to the State of Ohio or the IRS but provides a receipt or acknowledgment to you that you can use to claim the credit, if applicable.
This information is general in nature and is not intended to be used by anyone as tax advice. Please consult a tax professional that is aware of your personal tax situation about this credit and your potential use of it.
Here is an example of where to submit the tax credit on your State of Ohio tax return:
