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April 10, 2025
Question

Scholarship donation

  • April 10, 2025
  • 1 reply
  • 0 views

If I enter a $750 donation  for my state tax filing to a qualified SGO, why isn't my tax refund increased by the same amount?

    1 reply

    April 10, 2025

    What state?

     

    A tax deduction is not a tax credit.  A deduction means that instead of paying tax on (for example) $50,000 of income, you pay tax on $49,250 of income.  How much tax that actually saves depends on your tax rate and the other rules for deductions.    A credit is a direct reduction of tax.

     

    You need to tell us more about state you live in and what program you donated to so we can research whether it is a deduction or a credit and how it is calculated.