Federal Tax Credit
K-12 Scholarships
What Is the Federal Scholarship Tax Credit?
The Federal Scholarship Tax Credit (FSTC) is a new federal program that can help more families pay for their children’s education. It is the first nationwide school choice law ever passed by Congress.
Beginning in January 2027, people can receive a dollar-for-dollar federal tax credit when they donate up to $1,700 for individual filers, and up to $3,400 for married couples, to a scholarship-granting organization like Children’s Scholarship Fund (CSF).
That means each eligible taxpayers can choose to direct up to $1,700 to scholarships for students instead of paying that amount in federal income taxes.
How Can These Scholarships Help My Family?
If your child qualifies, an FSTC scholarship may be used for:
- Private school tuition
- Textbooks and curriculum
- Tutoring
- Computers and other learning technology
- Special education services and supports
- Other eligible educational expenses allowed by law
Scholarships funded by the federal tax credit can be used for eligible educational expenses by students attending private, public, and public charter schools.
Will My State Participate?
The program is available only in states whose governors choose to participate. For the latest list of participating states, check the IRS website’s Federal Scholarship Tax Credit page.
The good news: More than half of all governors have already opted their states into the program, and more states may join.
When Can Families Apply?
Scholarships funded through the Education Freedom Tax Credit will become available beginning in 2027.
As details become available, Children’s Scholarship Fund will share information about:
- How to apply
- Who is eligible
- Application deadlines
- Scholarship amounts
- Participating states
Would you like to be notified when CSF and CSF partners are ready to accept FSTC scholarship applications? Please complete the form below: