How it works
The scholarship tax credit, explained simply.
Each taxpayer · every year
$1,700
Contribute $1,700 to a qualified SGO, and if you owe at least that much in federal income tax, your tax bill goes down by $1,700.
Married, filing jointly
$3,400
Each spouse is entitled to their own $1,700 credit.
Follow the dollar
Where your contribution goes.
1
You
Contribute up to $1,700 in cash to a qualified SGO during the year.
2
The SGO
Deposits it in a dedicated scholarship account and sends you a receipt with your donor number.
3
Students
Eligible K–12 students receive scholarships for qualified education expenses.
4
Your return
You claim the credit, and your federal income tax goes down by the amount you gave.
An example
The Cohens give $3,400 in 2027.
Mr. and Mrs. Cohen file jointly and expect to owe $9,000 in federal income tax. They pledge now, contribute $3,400 to the SGO over the course of 2027, and ask that it go toward students at their local yeshiva and Bais Yaakov.
The Cohens’ 2027 return
- Federal tax owed
- $9,000
- SGO tax credit
- − $3,400
- Paid to the IRS
- $5,600
- Directed to scholarships
- $3,400
What scholarships cover
Qualified K–12 education expenses.
- Tuition and fees
- Books and curriculum
- Supplies and equipment
- Computers and technology
- Academic tutoring
- Special-needs services
The fine print, in plain English
Six rules worth knowing.
01
Nonrefundable
The credit can bring your federal income tax down to zero, but the IRS won’t send you a check for the difference.
02
Five-year carryforward
If your credit is larger than the tax you owe this year, the rest carries forward for up to five years.
03
No double benefit
You can’t also deduct the same gift as a charitable contribution. Any state tax credit for the same gift reduces the federal credit.
04
Cash contributions
The credit applies to cash contributions. Gifts of stock or property don’t qualify.
05
State participation
The credit only works in states that opt in. New York has announced that it will, and the formal steps are underway.
06
Through an SGO only
Gifts directly to a school don’t qualify. They must go through a scholarship granting organization on the state’s list.
When to claim
Contributions made in 2027 are claimed on your 2027 federal return, filed in early 2028.
Rules are still being finalized
The IRS issued proposed regulations in October 2026. Details may change, so check with your tax professional.
No payment · Nonbinding
Reserve your support for 2027.
A two-minute pledge tells us which yeshivos and schools you’d like to help, so everything is ready the day the program opens. You can change your mind at any time.