Ohio Scholarship Credit Calculation

[cad7]

Regardless, we still plan to make the full donation for tax tear 2023. This credit, as explained to us, is supposed to be dollar for dollar up to $1,500 filing jointly, however the maximum we've been able to enter for that dollar for dollar scenario is $388. There is more than zero on line 8c on our Ohio IT 1040 as listed in a previous post. Why are we not seeing the full dollar for dollar on our return calculation?

[JohnW152]

The Scholarship Donation Credit, claimed on line 15 of the Ohio Schedule of Credits, is a nonrefundable credit.  This means that it (and any other nonrefundable credits) can only be claimed to the extent that you owe tax.

The Total nonrefundable credits on line 38 of the Schedule of Credits will include your scholarship donation credit, but also any other nonrefundable credits that you've claimed on the Schedule.  If this line 38 amount is greater than the tax you owe on line 8c of Form IT 40, the credits will be limited to the line 8c, Form IT 40 amount.

Note that I'm unable to find your previous post, but feel free to post back with more information as needed.