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Writing

What we have worked out about the credit, including the parts we got wrong first.

ExplainerAugust 29, 2026 · 7 min

How the federal scholarship tax credit actually works

A dollar-for-dollar federal credit for giving to a scholarship organization, starting in 2027. What it is worth, who can use it, and the two rules people get wrong.

CorrectionAugust 29, 2026 · 5 min

You do not have to give in the state you live in

The §25F residency rule follows the scholarship organization. If your own state has not opted in, you can still claim the credit by giving to an organization in a state that has.

RegulatoryAugust 29, 2026 · 6 min

Five things about the scholarship credit the IRS has not decided yet

Treasury has not published final §25F regulations. Here is exactly what is unresolved, what it means for a gift you make now, and why guessing would be worse than waiting.

SGO Direct is an independent technology platform and is not affiliated with the IRS, U.S. Treasury, or any state government.

Tax treatment depends on applicable law and individual circumstances. Consult a qualified tax professional.