• What is the Oklahoma Equal Opportunity Education Scholarship Act?

  • The Oklahoma Equal Opportunity Education Scholarship Act (68 Okla. Stat. §2357.206) allows Oklahomans to receive Oklahoma state tax credits for giving to a Scholarship Granting Organization (SGO) limited to individual filing tax status. 

 

• What is the TCS?

  • The Tax Credit Scholarship program operates under the Catholic Church umbrella as a Scholarship Granting Organization to award scholarships to students whose family would not otherwise be able to afford tuition in Catholic schools in the Archdiocese of Oklahoma City.  An Oklahoma state tax credit is given based on individual tax filing status.

 

• Is the Catholic Schools Opportunity Scholarship Fund, Inc different than TCS?

  • No.  TCS is a shortened name used to describe the CSOSF, Inc.

 

• What schools can participate?

  • All accredited Catholic schools in the Archdiocese of Oklahoma City can participate in the TCS. 

 

• Does a student need to be Catholic to be eligible?

  • A student does not have to Catholic to receive this scholarship; however, they do need to be accepted into a Catholic school within the Archdiocese of Oklahoma City.

 

• What are the student eligibility requirements?

  • Student must be admitted to a Catholic School in the Archdiocese of Oklahoma City

  • Student must be in the United States legally

  • Family must meet financial need requirements (based on previous year income)

    • The most recent family’s IRS form 1040 must report adjusted gross income below 185% of Federal Poverty Level (FPL).
      
      2 - $31,284
      3 - $39,461
      4 - $47,638
      5 - $55,815
      * Each additional person: add $8,177

• How are the scholarship recipients determined?

  • Students apply to their local Catholic school.  The principal will nominate students for consideration to the TCS board who will select students for the scholarship. 

 

• How will scholarships be announced and paid?

  • The principal of each local Catholic school is the point of contact for all financial aid including the TCS.

 

• How are “low income” students defined?

  • Low income students are defined as families whose most recent family’s IRS form 1040 report adjusted gross income below 185% of Federal Poverty Level (FPL).
    
    2 - $31,284
    3 - $39,461
    4 - $47,638
    5 - $55,815
    Each additional person: add $8,177

• How is eligibility renewed?

  • Once eligibility has been established, you are considered eligible every year going forward until graduation.
     

• Does the TCS take away from public or state funding?

  • No. A recent independent study by economists from Oklahoma City University show, based on the Oklahoma’s per-pupil spending, for every $1 donated to a private institution, the public school saves $1.39 per student.

 

• Can my gift be designated to a specific student?

  • No.

 

• How much of my gift pays administrative costs?

  • State legislation allows up to 10% of collected funds to be used for administrative costs.
     

Tax Credit Definitions and Limits

• What is a tax credit versus a tax deduction?

  • A tax credit reduces the amount of taxes paid dollar-for-dollar.  A tax deduction is a reduction of income.

 

• What is a qualified business entity?

  • The law states that a “qualified business entity” includes limited and general partnerships, corporations, subchapter S corporations and limited liability companies that files as a partnership, corporation, subchapter S corporation or sole proprietorship.
  • The law does not address “sole proprietorships” or any other form of business structure, including trusts.  If a donor believes that their business should be treated as a “qualified business entity”, each taxpayer must seek a separate private letter ruling from the Oklahoma Tax Commission. 
  • Requests for letter rulings: Requests by individuals or groups of taxpayers for letter rulings will be honored by the Commission, at its discretion, and in consideration of the time and resources available to respond to such requests.  Requests for letter rulings should be made to the Tax Policy and Research Division, Oklahoma Tax Commission, 2501 N. Lincoln, Oklahoma City, OK 73194.

• Who is eligible to receive a tax credit?

  • Any individual, couple/family, or qualified business entity filing taxes in the state of Oklahoma are eligible to receive a tax credit.

 

• How much of a tax credit will I receive? / What is the tax benefit?

  • The maximum annual tax credits allowable are $1,000 for individual filers, $2,000 for couples filing jointly, and $100,000 for qualified business entities.

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• What is the deadline to contribute and receive a tax credit?

  • You must give in the same year you are filing taxes to receive the tax credit.  For example, to receive a tax credit for 2019, gifts must be processed by December 31, 2019.

**Tax Credit Calculator** (OSF Kids website has calculator, would like to have one of our own as well.)

Making a Gift to TCS

• How do I give to the TCS?

  • Gifts can be made through the TCS website under the “GIVE NOW” tab or you can mail a gift to Tax Credit Scholarship, Archdiocese of Oklahoma City. PO Box 32180, Oklahoma City, OK 73123

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• Can I give online?

  • Yes.  Please refer to the “GIVE NOW” option to give online.

 

• Can I choose which Catholic School I want my gift to go towards?

  • Yes.  After administrative costs, you may designate one school to receive 75% of your gift. The remaining 25% will assist families in financially struggling communities.

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• Can I choose multiple Catholic Schools to receive my gift?

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• No.  Each gift can be designated to one school or you may choose to give an undesignated gift supporting the schools with greatest financial need.

 

• How does the undesignated money get distributed?

  • Undesignated funds go towards the schools in most need.  Every Catholic school in the Archdiocese of Oklahoma City is broken up into 3 tiers based on their needs, with the 1^st tier receiving the most funds in undesignated gifts, 2^nd tiers receiving less, and 3^rd tiers receiving zero undesignated gifts.
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• How much do I need to contribute to receive a tax credit?

  • Benefactors are asked to contribute a minimum of $1,000 annually; however, no gift will be turned away due to size.

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• Is there a maximum tax credit amount?

  • Yes.  For individual filers, the maximum tax credit is $1,000, for couples filing jointly, it is $2,000, and for qualified business entities, the maximum tax credit is $100,000.

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• Do I have to give 2 consecutive years to receive the maximum tax credit?

  • Yes. In order to receive the 75% tax credit, the gift must be received in two consecutive years.

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• Will I be reminded of my yearly pledge?

  • Yes.

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• Will my information (name) be shared with the school or student that receives it?

  • Yes. Unless designated gift as anonymous, designated schools will receive your contact details, so they may acknowledge your gifts.

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• What happens if the total Oklahoma state tax credit allocation is exceeded?

 

• ​​​​​​​​​​​​​​For calendar year 2019, the Oklahoma legislature allocated $5 million in total Equal Opportunity Education Scholarship tax credits. If total gifts to Oklahoma Scholarship Granting Organizations result in tax credits exceeding $5 million, the actual tax credit percentage will be prorated proportionally, with the unused, “suspended” credits available to the donor in the next immediate tax year and up to 3 years.