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Why isn't my Ohio State Scholarship credit being properly calculated?

I entered $1500 as our Ohio State Scholarship credit amount donated and the software doesn't seem to calculate the correct credit amount to decrease our net tax due.

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1 Reply
JohnW152
Expert Alumni

Why isn't my Ohio State Scholarship credit being properly calculated?

The most likely reason you're not seeing the full (or any) scholarship credit amount is that it's a non-refundable credit.  This means that it can be used only if it offsets any tax you may owe on your state return.

You would compute the total of your nonrefundable credits on line 35 of the Ohio Schedule of Credits, and carry it over to line 9 of Ohio Form IT 1040. 

If the income tax liability before credits on line 8c of IT 1040 is less than your total nonrefundable credits, you won't get the full amount of credit.  If line 8c is zero, you won't be able to use your nonrefundable credits.

If this doesn't appear to be the issue, please post back with more detail.

See the Form IT 1040/SD 100 and instructions on Ohio's Tax Forms  page. 

Also see the TurboTax article What Is the Difference Between a Refundable and a Nonrefundable Credit? for more information. 

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