Tax Credit FAQs
People can donate money and have it COST THEM NOTHING. A tax credit is available against Ohio Income Taxes for $50 for individuals and $100 for married/joint returns. Unlike the more common deduction from taxable income, the Ohio political contributions credit is a dollar-for-dollar full tax credit off the bottom line of your taxes. Candidates for the Ohio Legislature and a few other offices are eligible to accept tax credit dollars. That is how every taxpayer in Ohio can send me $50 or $100 and have it COST THEM NOTHING because they will get the full amount back when they file their tax returns. The credit is found on the Ohio IT 1040 Statement of Credits. Ohio taxpayers have two choices: They can give the money to an eligible candidate, or give the money to the “Ohio Tax Man”.
What if a tax professional prepares my tax return?
Simply include your receipt along with your W-2s and other tax documentation that you would normally provide to your tax professional.
Don’t I only get a percentage back like a church donation?
No. A charitable donation reduces taxable income. A credit reduces the tax itself dollar-for-dollar.
I don’t need the credit because my employer withholdings gets me close to even and I usually get a refund.
A $50 donation for individuals or $100 on married/joint returns will increase your refund.
Why wouldn’t all Ohio taxpayers want to take advantage of this credit?
- Very few people know about it.
- Fewer people understand it.
- It is easier to pay the “Ohio Tax Man.” The alternative is for taxpayers to: 1) Write a check to “Friends of Becker”; 2) Enter that dollar amount on their Ohio IT 1040 Schedule of Credits.
- Some people live paycheck-to-paycheck and simply do not have any money. (They’ll find it by April 15th.)
- Some people prefer paying the “Ohio Tax Man.”
How can I be sure that I qualify for the credit?
All Ohio taxpayers qualify. However, very low income people may not have enough taxable income to fully benefit from the credit.
That’s awesome! If I write you a check for $100 before the end of this year, will I get the credit early next year when I file my tax return?
Yes. For a joint return, $100 is the maximum that is eligible for the credit. Write the check now and you will get the full amount back as soon as you file. Please send it to:
Friends of Becker
925 Locust Lane
Cincinnati, OH 45245-1313
What if I’ve already given $100 to a qualifying candidate? Can I give another $100 to you and claim a $200 credit on my state income taxes?
No. You can give to more than one candidate, but the maximum for the credit is $100 per married/joint return; not per candidate. However, if you have given, say $25, to a qualifying candidate, you can send me $75 and get the $100 credit on a joint return.
What if I think you’re a great guy and I want to give more?
The maximum is $12,707.79 per person (older than 6-years-old), per campaign cycle. Please include the name of your employer for required reporting purposes.
Many of you have contributed to my campaign and I thank you for that. The rest of this letter is for those who have not.
This is your opportunity to take advantage of the Ohio IT 1040 Political Contributions Tax Credit. That credit has helped me to raise a large percentage of my donations. Few people take advantage of this credit. Most people don’t understand it. Or they don’t understand how a contribution could be FREE to them.
All Ohio taxpayers file a federal 1040 and a state 1040. Most people have a tax professional do the work for them and may not fully understand the differences between the federal deductions & credits and the state deductions & credits. They are all different.
Political contributions have no value on the federal 1040. They are not deductible from gross income and there is no credit available.
However, on the Ohio 1040, a credit is available for contributions to “state” candidates. State candidates include all statewide offices with the exception of US Senate. The General Assembly (both State House and State Senate) and state school board are also included.
A credit is not a deduction from taxable income like a charitable donation. A credit is a reduction of the tax itself and therefore far superior. It’s off the bottom line. In basic terms, the math works as follows:
Gross Income (Salary, Interest, Dividends, etc.)
Less Deductions and Exemptions
= Taxable Income
A tax is then derived from the tax table.
= Tax Liability
Less Tax Payments (Withholdings)
= Refund or Amount Due
Please do me a favor and take advantage of the Ohio Political Contributions tax credit. It is dollar-for-dollar and worth $50 per taxpayer. It is worth $100 on a married/joint tax return. The above calculations demonstrate why you can donate to my campaign for FREE. I will mail you a receipt for your tax records.
Another way to think of it is that you will decide how to allocate your tax dollars. You can send me $50 ($100 for married/joint filers) and reduce what the state government collects from you by $50 per taxpayer. Or do nothing and let the state government keep your money.
If you prefer to use a credit card, you must do so by year end. Please use this secured link:
If you prefer to send me a check or money order, it must be dated by December 31st for you to take advantage of the credit for the tax return you will soon be working on. The postmark is not important. Please send to:
Friends of Becker
925 Locust Ln.
Cincinnati, OH 45245-1313
Thank you very much for your consideration. All the best!