Federal Scholarship Tax Credit (FSTC)

Beginning January 1, 2027, the Federal Scholarship Tax Credit (FSTC) allows any U.S. taxpayer to redirect up to $1,700 in federal taxes — dollar for dollar — to a qualified Scholarship Granting Organization (SGO) that funds K-12 educational scholarships, turning money that would have gone to the IRS into an investment in a child’s future at zero out-of-pocket cost. Unlike a deduction that merely reduces taxable income, the FSTC is a true dollar-for-dollar credit against your federal tax liability, making it one of the most impactful tax planning opportunities available to individual taxpayers in a generation. With the 2027 effective date approaching, now is the time for taxpayers and their advisors to understand how the program works and how to participate. Browse the videos and downloadable flyers below to get started.