10/07/2026
That $1,700 headline needs a little explaining! ๐๐
Beginning January 1, 2027, eligible taxpayers can receive a federal tax credit for qualifying cash donations to approved Scholarship Granting Organizations.
๐ฐ Up to $1,700 per eligible taxpayer.
๐ซ Donations must go to a qualifying SGO in a participating state.
๐งพ Keep your donation records.
Hereโs the key: this credit is NONREFUNDABLE. It reduces federal income tax it isnโt an automatic $1,700 payment.
Example: Donate $1,000 and have enough qualifying federal tax liability? You could reduce that tax by $1,000. State tax credits and other limits can affect the calculation.
Unused credit may carry forward for up to five years.
๐ October 2026 proposed guidance would allow up to $3,400 for married couples filing jointly when each spouse makes qualifying contributions. Final rules may change.
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Qualifying 2027 donations are claimed on your 2027 return filed in 2028.
Save this post! Understanding a credit before counting on it makes a difference.
Uptown Tax Pros ๐