How it works
How the Education Freedom Tax Credit Works
Give to a scholarship fund and get it back, dollar for dollar, on your federal taxes. The credit is worth up to $1,700 per person, or up to $3,400 for married couples filing jointly.
Last updated October 23, 2026
The Short Answer
You give cash to a scholarship granting organization (SGO). When you file your taxes, the credit lowers your federal tax bill dollar for dollar, up to $1,700 per person or $3,400 for married couples filing jointly. The SGO uses your gift to award K-12 scholarships.
- Up to $1,700per individual
- Up to $3,400married filing jointly
- Jan 1, 2027gifts qualify beginning
- 5 yearsunused credit carries forward
Three Steps and Your Gift Comes Back to You
Step 1: Give to a scholarship fund
Make a gift to a partner scholarship fund. Federal gifts open January 1, 2027.
Step 2: Claim it back on your taxes
The credit lowers your tax bill dollar for dollar. That is different from a deduction, which only lowers your taxable income.
Step 3: A student gets a scholarship
The fund awards scholarships to eligible K-12 families. Students can use them at eligible schools across the country.
What If I Already Get a Refund?
You could get even more. If you already pay federal income tax through your paycheck, the credit could make your refund bigger.
When Does Everything Happen?
Dates reflect Treasury and IRS guidance as of October 2026 and may change.
January 1, 2027
Gifts qualify beginning this date.
By January 31, 2028
Your SGO sends an acknowledgement with your unique donor number for gifts made in 2027. Keep it with your tax records.
2028
Claim the credit on your 2027 return, filed in 2028, using your donor number.
Estimate Your Credit
Estimate your credit
Answer three quick questions to see how much of your federal tax you could direct to scholarships. Your answers are not saved.
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Go deeper before you give.
FAQ
Frequently Asked Questions
A reminder in January 2027. You are not paying anything or committing to give today.
Under the Federal Scholarship Tax Credit, IRS rules state that a $1,700 contribution (donation) can lower your federal income taxes by $1,700. And married couples filing jointly can contribute and receive up to $3,400 back as a credit. You make the contribution in 2027, and claim the credit when you file your taxes in 2028.
You make the contribution with your own money first. The credit then lowers your federal income tax dollar for dollar, which offsets your contribution. The credit can bring your federal income tax bill down to zero, and any amount left over can carry forward for up to five years.
If you already pay federal income tax through your paycheck, the credit could make your refund bigger.
Be ready on January 1.
Leave your email and we will let you know the day the federal credit opens. No payment or commitment today.