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You owe federal taxes anyway
No new spending required. You give now and get it back when you file.
The Freedom Tax Credit
How it works
Starting with 2027 gifts, individual taxpayers can redirect part of their federal taxes to K–12 scholarships through a certified scholarship granting organization (SGO).
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Redirect up to $1,700
Give to a certified SGO and mark the gift as credit-eligible at checkout. Married couples who each give can redirect up to $3,400.
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Claim it dollar-for-dollar
File it as a federal tax credit using the donor number from your SGO, so each dollar reduces the tax you owe.
Compared
Same generosity. A smarter tax outcome.
Typical donation
- Where the money goes
- Directly to school operations or the specific need you choose.
- Flexibility
- Can be restricted to a specific program or purpose.
- Tax treatment
- A deduction that lowers taxable income, if you itemize.
- What it costs you
- A real out-of-pocket cost, only partly offset.
The Freedom Tax Credit
- Where the money goes
- Into a certified scholarship fund serving students in your community.
- Flexibility
- Goes to the scholarship fund itself; gifts can't be earmarked for a student.
- Tax treatment
- A dollar-for-dollar credit that directly reduces the tax you owe.
- What it costs you
- $0 net cost when you owe at least that much federal tax. Unused credit carries forward up to 5 years.
Who can redirect?
ParentsGrandparentsAunts & unclesFamily friendsAlumniNeighbors
Any U.S. individual taxpayer, in any state, even if the student isn't their own child. Gifts made through a business (partnership or S corporation) don't qualify.
Timeline
Key dates
From the first gift of the year to tuition paid.
- Jan 1, 2027Fund year begins and individuals can start redirecting
- Nov 1 – Dec 31, 2027Scholarship applications
- Dec 31, 2027Last day to give for 2027 credit
- Jan 15, 2028Award notices sent so families know their award to support their enrollment choice
- Jan 31, 2028Additional donor receipts sent for tax reminder
- Jul 1, 2028Funds paid to schools
FAQ
Frequently asked questions
You give now and claim the credit on your 2027 return, so it comes back as a lower tax bill or a larger refund. The credit can only offset federal tax you owe; any unused amount carries forward for up to 5 years.
Yes. Each U.S. individual taxpayer can claim up to $1,700 a year, from any state. A married couple filing jointly can claim up to $3,400 if each spouse gives.
Your SGO sends an acknowledgement with your unique donor number by January 31 of the following year. You enter that number when you claim the credit on your federal return.
Only $1,700 per person counts toward the credit. The rest may be deductible as a regular charitable gift if you itemize.
No. Federal law bans earmarking gifts for a particular student, and a school preference is only a recommendation. The SGO awards scholarships to eligible students using published criteria: at least 10 students across at least 2 schools, with last year's recipients and their siblings considered first.
Not entirely. The IRS rules issued in October 2026 are partly proposed and may change before the first credits are claimed. Check with your tax professional before you give.
Redirect your 2027 taxes in under 10 minutes.
Find a scholarship granting organization near you, give before December 31, and claim the credit when you file. Not legal or tax advice; consult your tax professional.