FAQS

FREQUENTLY ASKED QUESTIONS

What is the Oklahoma Equal Opportunity Education Scholarship Act?

The Oklahoma Equal Opportunity Education Scholarship Act (68 Okla. Stat. §2357.206) (“Scholarship Act”) allows individuals and businesses to receive Oklahoma state income tax credits for contributing to a scholarship granting organization (“SGO”) recognized by the Oklahoma Tax Commission. The SGO then uses those contributions to provide scholarships for eligible students to attend a private school.

What is GO for Private Schools?

GO for Private Schools is the trade name or doing business as “dba” name of GO for Great Schools, Inc. (“GO”) which is a scholarship granting organization under the Scholarship Act that that awards scholarships so that students with financial need can attend a private school in Oklahoma.  GO is an independent 501(c)(3) organization established to assist private schools in Oklahoma. 

What is GO’s tax identification number?

The tax identification number for GO for Great Schools, Inc. dba GO for Private Schools is 83-2415970.

What is a tax credit? *

Tax credits directly reduce the taxes you pay on a dollar-for-dollar basis. An Oklahoma state income tax credit is like a gift card from the State of Oklahoma that you can use to pay your state income taxes. For example, with a $1,000 tax credit from the State of Oklahoma, you can pay $1,000 in state income taxes.

What is a tax deduction?

Tax deductions reduce the base of taxable income upon which you pay taxes, which translates into a reduction on the amount of taxes that you pay; however, the value of tax deductions depends upon a number of factors specific to each taxpayer, including your taxable income which determines your tax rate, whether you itemize deductions, the application of phase outs of certain deductions, and whether the alternative minimum tax applies to you.

How is a tax credit different from a tax deduction? *

Both tax credits and tax deductions help to minimize the overall taxes you pay, but tax credits are much more valuable because they directly reduce taxes dollar-for-dollar.

Who is eligible to receive a tax credit? *

Individuals and legal business entities (corporations, limited liability companies and partnerships) can contribute to the GO for Private Schools Tax Credit Scholarship Fund and receive a state income tax credit from Oklahoma. Individuals can receive up to a $1,000 tax credit annually, married couples can receive up to a $2,000 tax credit annually, and legal business entities can receive up to a $100,000 tax credit annually.

How much of a tax credit will I get? *

The tax credit earned by contributing through GO is equal to a percentage of the amount you contribute, depending on whether you contribute for a single year or commit to contributing the same amount for two consecutive years. If you are willing to commit in writing to contribute the same amount for two consecutive years (e.g. 2022 and 2023), then the law grants you a tax credit of 75% of the amount contributed each year. If you only want to make a single year contribution, the tax credit is only 50% of the amount contributed.

Is there a cap on the amount of tax credits that can be claimed? *

Yes, the Scholarship Act sets a statewide cap on the aggregate amount of tax credits that may be claimed each year; however that amount was substantially increased by an amendment to the Scholarship Act that was signed into law in 2021.  

As of January 1, 2022, the Scholarship Act sets aside $25 Million in annual tax credits exclusively for contributors to SGOs like GO for Private Schools and another $25 Million in annual tax credits exclusively for contributors to EIGOs, for a total of $50 million in annual tax credits (collectively, the “Annual Tax Credit Cap”).  Furthermore, any tax credits available to contributors to EIGOs that are not used each year will be used to benefit contributors to SGOs, and vice-versa. 

 

To be clear, the total Annual Tax Credit Cap of $50 million automatically replenishes each year. 

What is the effect of the annual tax credit cap? *

All SGOs are required to file a report with The Oklahoma Tax Commission in January of each year detailing contributions received during the prior calendar year. The Tax Commission calculates the total amount contributed to all SGOs for the just completed tax year and the total amount of tax credits earned by such contributions and publishes a report on its website by February 15 of each year. Link to OTC Annual Announcement.

If total tax credits earned from contributions to all SGOs in the State for that year exceed the available tax credits for the year, then a portion of the tax credit earned by each contributor to an SGO will be deferred or “suspended” by the Tax Commission on a pro-rata basis so as not to exceed the effective Annual Tax Credit Cap. NOTE: No tax credits are lost as a result of such deferral, rather the timing of the use of the tax credits by the taxpayer may be delayed.

If the Annual Tax Credit Cap is exceeded in one year, the Annual Tax Credit Cap for the following year will effectively be reduced by the amount of the suspended credits (the “Effective Annual Tax Credit Cap”).  

When can I use my tax credit? *

Tax credits received from contributing through GO may be used in the immediately following year, to the extent that the Annual Tax Credit Cap is not exceeded. For example, tax credits earned by contributing through GO in 2021 (to the extent not deferred or suspended) may be used to offset income taxes on your 2021 Oklahoma tax return filed in 2022. In addition, any tax credit not used in a given tax year may be carried over for up to three years. The tax credit is not refundable. You must use it as an offset to Oklahoma income taxes.

Has the Annual Tax Credit Cap changed recently? *

Yes!  Senate Bill 1080 was signed into 2021 and amended the Scholarship Act in significant ways.  Most importantly, for 2022 and beyond, the Annual Tax Credit Cap applicable to SGOs like GO for Private Schools was increased to $25 million. 

Because of this substantial increase in the Annual Tax Credit Cap, it is unlikely that tax credits earned by each contributor to an SGO will be deferred or “suspended” by the Tax Commission in 2022. 

How can my school benefit from GO?

GO can be a powerful partner and tool for your school.  And any private school in Oklahoma that meets just a few basic, statutory requirements can become a GO Partner School at no cost to your school or your supporters!  

 

Please reach out to us by email at info@GOforPrivateSchools.com, so we can find a time to visit and help you understand better what GO can help you do for your school and the students, families, teachers and community that you serve.  

How will scholarship recipients be selected?

Each student applying to a GO Partner School in Oklahoma that meets the statutory requirements is eligible to apply for a GO Scholarship.  Students that apply for financial aid from an eligible GO Partner School may opt to be considered for a GO Scholarship and must submit the required information by the deadlines established by the school to be considered for a GO Scholarship.  All students that are eligible to receive GO Scholarships based on verified financial aid application data will be awarded a scholarship.  Acceptance into the GO Partner School is a prerequisite that must be met before a student will be considered for a GO Scholarship. The only other criteria for receiving a GO Scholarship is the student’s demonstrated level of financial need for which GO will rely solely upon family household income and size of family as a proxy. Students with the highest level of financial need will receive larger scholarship awards. 

How large will GO Scholarship awards be?

Under the Scholarship Act, an eligible student may receive a scholarship worth up to 80% of the statewide annual average per-pupil expenditure as determined by the National Center for Education Statistics of the U.S. Department of Education. For the 2021-2022 school year, that maximum scholarship amount was approximately $7,300. The actual scholarship amount will depend upon a number of factors, including the level of engagement of each Partner School and their success in raising funds each year which determines the amount of money available for scholarships, the number of eligible students seeking financial assistance, and the level of financial need of the students. 

How will scholarship awards be announced and paid?

GO will work with our Partner Schools to meet their scholarship needs throughout the year so that Partner Schools can be full and serving as many students and families as possible. However, the vast majority of GO scholarship funds will be awarded near the beginning of each academic year. By coordinating with each of our Partner Schools, GO will notify scholarship recipients of award amounts by October 1 of each calendar year. Scholarship funds will be provided by check made payable to the scholarship recipient and delivered to the Partner School where the student is enrolled. 

How can I contribute to the GO for Private Schools Tax Credit Scholarship Fund and earn my Oklahoma State income tax credits?

The easiest way is through the online contribution portal which may be accessed by clicking the CONTRIBUTE NOW button on the GO website.  You may pay by Credit Card or Check.

You may also complete a handwritten contribution form and send it with your Check or Credit Card information to:

     GO for Private Schools Tax Credit Scholarship Fund
     PO Box 52820
     Tulsa, OK 74152

Note: Contributions made by credit card incur a processing fee of approximately 3%. GO will absorb that processing fee. The gross amount contributed (including the processing fee) counts as your contribution for purposes of calculating both your state income tax credits and the amount of your charitable deduction.

May I designate my contribution to a particular school?

Yes. You may designate a preference for up to 90% of your contributed funds to be used for scholarships at particular private school. GO will honor those requests for Partner School, but may deviate if necessary to remain true to the primary mission of the organization, which is to provide scholarships to students most in need of financial assistance so they may attend a private school that best fits their needs, desires and aspirations, or to meet certain legal requirements. If you elect not to designate preferred schools, your entire contribution will go to the general scholarship fund for distribution to students to attend private schools in Oklahoma as determined by the GO Board with a focus on providing scholarships for students with the greatest financial need.

May I designate my contribution to a specific student?

No. As a 501(c)(3) charitable organization, GO cannot accept contributions designated for particular individuals.

Is my contribution used entirely for scholarships?

Hopefully, yes!  But read on to understand the big picture of how and why…

The Scholarship Act requires that each SGO disburse at least 90% of the money it receives each calendar year in the form of scholarships for eligible students during the following academic year, with no more than 10% of contributions available to pay administrative costs. 

GO was developed in a manner to minimize administrative costs and is currently 1) seeking benefactors to cover at least half of the administrative costs required to manage the GO for Private Scholarship Tax Credit Scholarship Program and 2) asking our Partner Schools to cover the other half either directly or by seeking support from their benefactors, so that 100% of contributions received from people like you will go directly toward scholarships for students in private schools.  

 

We think it is important for each of our Partner Schools to understand and appreciate the value of what GO is bringing to the table, which is why we ask our Partner Schools to contribute to cover at least a portion of the cost somehow, as described above.  

We also believe that schools, students, families and communities across the State of Oklahoma are stronger and will be more successful in improving our system of education when we are all in this together!  For that reason, GO allows contributors to designated up to 90% of their contribution to schools of their choice, but requires that 10% of each gross contribution flows into a scholarship pool to benefit all private schools in Oklahoma with a focus on students with the greatest financial need.

 

Of course, schools that are most actively engaged in educating their supporters about the power of GO will benefit most, but they will also be contributing in a real way to the success of this program for all Oklahoma schools, and, most importantly, for the students, families and communities they serve.

 

If you identify with our vision for an educational system without borders and want to consider being such a GO Benefactor, we would love to hear from you!

Where are contributions held?

Contributions to GO are held at our bank in an account designated solely for the purpose of the GO for Private Schools Tax Credit Scholarship Fund or in a reserve fund where such funds can be conservatively invested to generate a return while waiting to be deployed to fund scholarships at our Partner Schools. 

What is the deadline to contribute and still get a tax credit?

Contributions to the GO for Private Schools Tax Credit Scholarship Fund received by December 31 will count as charitable contributions made during that calendar year for purposes of earning your state income tax credit from Oklahoma and your charitable tax deduction. The tax credit that you earn by contributing through GO in each calendar year may be used to offset your Oklahoma taxable income when you file your tax return for that year, subject to any deferral required as a result of exceeding the Annual Tax Credit Cap. 

The amount of tax credits earned only depends on the amount of your contribution through GO, the category of contributor you are (single, married, or business), and whether you are willing to make a 2-year written contribution commitment to earn the 75% tax credit versus a 50% tax credit for a single year contribution.

The amount of the tax credit that you may claim by contributing through GO in 2022 will be determined by February 15 of 2023 and may be claimed when you file your tax return for 2022. Federal and state tax deductions for your charitable contribution to GO in 2022 may also be claimed when filing your 2022 tax return.

Where can I get more information regarding the Oklahoma Equal Opportunity Education Scholarship program?

You can review the statute itself, Oklahoma Equal Opportunity Education Scholarship Act (68 Okla. Stat. §2357.206). The Oklahoma Tax Commission, which is responsible for carrying out the statute, is another good source of information (www.tax.ok.gov).

INFORMATION ONLY.  NO TAX ADVICE.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors for specific tax advice.

*Please consult your professional tax advisor for specific tax advice.