BengalSGO

Beginning in tax year 2023, the credit may  be claimed for contributions made on or before the unextended return due date, but the same contribution cannot be used to claim the credit in two tax years. 

It is an organization that is certified by the State of Ohio to be a Scholarship Granting Organization whose primary intent must be to award academic scholarships to low-income students who attend schools in grades K-12. Primary intent means the organization must spend more than 50% of expenses on scholarships with preference given to families with demonstrated income below 300% of poverty level.

The State of Ohio enacted legislation allowing those who make a contribution to certified scholarship granting organizations a tax credit up to $750 per individual or $1,500 for married couples filing jointly. This credit is available to all individuals who have an Ohio tax liability. The credit is a dollar-for-dollar credit, but is limited to the lesser of $750 for an individual (or $1,500 if married filing jointly) or the related state of Ohio tax liability

Yes and No.  The Benedictine High School Scholarship Granting Organization (BengalSGO) allows members of our community to make contributions directly to benefit Benedictine High School students while also receiving this Ohio tax credit – dollar for dollar. Should you prefer to make a contribution to Benedictine High School through the Catholic Community Foundation’s Angel Fund, we will still receive it.

Contributions to the BengalSGO benefit Benedictine High School students and their families by prioritizing scholarships for those with demonstrated financial need. It will also allow taxpayers to reduce their Ohio state tax liability. This is a dollar-for-dollar tax credit against your tax liability or the taxes you owe to the State of Ohio. When you allocate your tax dollars to the BengalSGO, it goes to Benedictine High School to help our students instead of going to the State of Ohio.

All individuals with earned income pay income taxes to the state – even if you received a refund in the previous year.  Your state tax liability is not the amount deducted from your paycheck or the amount refunded to you or owed to the state. Rather, the tax liability is the total amount owed to the state BEFORE determining whether there is a refund or a payment due. To estimate if you will have a tax liability in the coming year, review your tax liability from the previous year’s State of Ohio tax return (in 2022, this amount would be on Ohio IT 1040, line 8c). After considering whether there have been significant changes to your income this year, reviewing the prior year’s State of Ohio tax return will help to estimate whether you will have a similar liability in the current tax year. It is recommended that you contact your tax preparer with questions.

A tax deduction reduces a taxpayer’s overall taxable income. A tax credit is a dollar-for-dollar credit against the taxes paid to the State of Ohio up to the limits allowed by the credit. All contributions of this kind are directed to the BengalSGO rather than to the State of Ohio. Since the BengalSGO is a 501(c)(3) your donation is tax deductible on your federal income tax if you itemize deductions.

Yes. This is a great way to increase your impact! However, you will only receive a receipt and tax credit for your contribution, not your employer’s matching amount.

All students who attend Benedictine High School are eligible to receive an award if there are enough funds but low-income students will be prioritized.

Yes. Benedictine High School students may apply for a financial assistance award through the BengalSGO by completing a FACTS Grant & Aid application. FACTS is a third-party company that secondary educational institutions use to conduct financial analyses to determine families’ financial needs. A link to that application is provided on the Benedictine High School website under Admissions.

Each donor is personally responsible for maintaining the contribution acknowledgment receipt provided by the BengalSGO. That receipt will be needed to claim the tax credit through the State of Ohio.

Taxpayers claim the credit when they complete their tax return by writing in their contribution amount on the designated lines of the Ohio individual income tax return and attaching their tax receipt from the BengalSGO. You will not receive the benefit of the BengalSGO if you do not have a tax liability to the State of Ohio or have other Ohio tax credits that reduce your Ohio tax liability to zero.

You will claim this credit when you file your Ohio state income tax return. The nonrefundable credit will reduce your state tax liability (the amount you owe in taxes). A nonrefundable tax credit limits your tax benefit to no more than what you owe in taxes. The amount of the tax credit you can claim equals 100% of the amount you contribute, up to $750 per taxpayer.

If you and your spouse file “Married Filing Jointly,” you can receive a credit for up to $1,500 on your joint state income tax return.

Here’s How it Works:

• If you owe money for the current tax year, you deduct the amount you contribute to the BengalSGO from what you owe. Example: You owe $1,000 to the state, and you make a tax credit contribution of $750. You now only owe the state $250.
• If the state owes you a refund for the current tax year, your refund will increase by the amount you contribute to the BengalSGO. Example: You are due a refund from the state of $500. You make a tax credit contribution of $750, and you’ve increased your refund to $1,250.