If you are keeping up with our blog posts, you might have seen that we mentioned one way Indiana payers could save on their state taxes. In the last post, we talked about Neighborhood Assistance Program Tax Credits and what benefits come from that. In this blog, I will be explaining the Scholarship Granting Organizations tax credit.
An SGO is an organization that awards school scholarships to eligible students. Qualified SGOs receive funding for school scholarships from private, charitable donations.
Contributing to an SGO gives you a 50% tax credit for your donated amount. This credit works precisely like the NAP tax credits we covered before, but for the SGO, no minimum amount is required to be donated to receive the credit.
Please remember that this results in a state income tax; it cannot be used to offset your local county income tax.
You MUST contribute your funds to participating SGO. A list of organizations and more specifics regarding the program can be found here: https://www.in.gov/doe/students/indiana-choice-scholarship-program/school-scholarships/.
You must tell the organization that this contribution is for the SGO credit. They MUST give you the appropriate donor contribution form, including certification codes.
Michael Salazar
The post Scholarship Granting Organization Tax Credit (SGO Credit) appeared first on SBS CPA Group, Inc..
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