Federal Scholarship Tax Credit Calculator
Federal Scholarship Tax Credit · Education Freedom Tax Credit
See exactly what the Federal Scholarship Tax Credit (FSTC) — also called the Education Freedom Tax Credit (EFTC) — does to your federal tax bill. Adjust your tax liability and donation amount to see your dollar-for-dollar credit and out-of-pocket cost.
What These Numbers Mean
TAX CREDIT
Direct reduction of your IRS bill
Comes off your federal tax dollar for dollar. Capped at your donation, your tax, or $1,700 per person ($3,400 for married couples filing jointly, under proposed rules), whichever is lowest.
NEXT TAX BILL
What you actually owe after
DOLLAR-FOR-DOLLAR
Can Cost You Nothing
Worked Examples
Up to 100% Tax-Credited.
This isn’t a charity ask. It’s a choice about where your tax dollars go. Three common donor scenarios — try them in the calculator above, or use these as reference.
SCENARIO A
MAXED OUT
Single filer
Federal tax liability $8,500
Donates the full $1,700
Tax credit $1700
Net tax bill $6800
Out-of-pocket $0
SCENARIO B
LOWER LIABILITY
Filer with $1,200 federal tax liability
Donates the full $1,700
Tax credit $1200 (capped at liability)
Remaining $500 carries forward up to 5 yrs
Out-of-pocket $500— recoverable in future years
SCENARIO C
STACKED WITH STATE CREDIT
Already claimed $600 state SGO credit on the same donation
Donates $1,700 to EducationSuperHighway
Federal credit $1,100 (reduced by state credit)
Federal and state credits cannot stack on the same dollar
Out-of-pocket $0 (after state credit applied)
THE FEDERAL SCHOLARSHIP TAX CREDIT IS DIFFERENT
Most charitable donations are tax-deductible — they reduce your taxable income. The FSTC is a credit — it reduces your tax bill dollar-for-dollar. That’s a fundamentally more powerful benefit for the donor. Use our tax savings calculator to determine the amount that’s right for your tax situation.
DISCOVER MORE
How It Works
SOLVING AMERICA'S LITERACY CRISIS
Why Donate To EducationSuperHighway?
If a child isn’t reading on grade level at the end of first grade, they rarely catch up. The literacy gap follows students for life — affecting their education, income, and opportunity. But with the right support at the right time, every child can become a confident, fluent reader.
Starting January 1, 2027, when you donate to EducationSuperHighway’s literacy tutoring scholarships, you’ll receive a dollar-for-dollar federal tax credit up to $1,700. Your no-cost gift funds 1:1 literacy tutoring for first graders who need it most.
OUR WORK IN ACTION
Where Can I Make A Donation?
Frequently Asked Questions
Your credit is the smallest of three amounts:
- Your donation, minus any state tax credit you claim for the same gift
- Your federal income tax for the year
- $1,700 per person. Under Treasury’s proposed rules, married couples filing jointly can each claim up to $1,700, for up to $3,400 on a joint return.
The credit comes off your federal tax dollar for dollar. If you donate $1,700 and owe at least $1,700, your federal tax drops by $1,700.
If your tax is lower than your donation, the credit you can’t use carries forward for up to five years. For example, if you donate $1,700 and owe $1,200, you use $1,200 this year and carry $500 forward. The credit is nonrefundable, so it can lower your tax bill but can’t turn into a refund on its own.
You make your gift first and claim the credit when you file your federal return. If you give through payroll, you can adjust your W-4 so the credit shows up in each paycheck instead.
This is for informational purposes only and does not constitute tax, legal, or financial advice. Always consult a qualified tax professional. Credit regulations are subject to IRS finalization.
The calculator gives an illustrative estimate based on the statute (Section 70411 of P.L. 119-21) and IRS guidance to date. Treasury and IRS regulations are still being finalized, so final filing rules may differ. Always confirm with a qualified tax professional before filing.
A deduction reduces your taxable income — a credit reduces your tax bill directly, dollar-for-dollar. A $1,700 deduction in the 22% bracket saves about $374. A $1,700 Federal Scholarship Tax Credit / Education Freedom Tax Credit donation saves the full $1,700. The credit is roughly 4.5× more valuable.
No. The federal credit is reduced dollar-for-dollar by any state SGO credit claimed on the same contribution. To maximize total benefit, donors typically make separate donations: one to a state-credit-eligible SGO, one to a federal-credit-eligible SGO. The calculator’s State SGO field shows the reduction.
At EducationSuperHighway, a $1,700 Federal Scholarship Tax Credit contribution funds a full academic year of daily 15-minute one-on-one literacy tutoring for a first-grade student reading below grade level.
Donations made on or after January 1, 2027 qualify. The credit is available for tax years 2027 onward under current law. Contributions must be in cash — check, credit card, or debit card. Stock and in-kind contributions do not qualify.
No. The credit is federal, so any U.S. taxpayer can claim it regardless of residency. State opt-in only determines which Scholarship Granting Organizations are eligible to receive credit-qualifying donations. EducationSuperHighway is pursuing approval in multiple states so donors nationwide can contribute.
Yes. Copy the embed code below to add the calculator to any tax-advisor blog, financial-planning site, or charitable-giving resource. The embedded calculator includes a small attribution link — no separate licensing is required.
Embed This Calculator
<iframe src="https://www.educationsuperhighway.org/wp-content/uploads/esh-tax-calculator2026.html"
width="520" height="780"
style="border:0; max-width:100%;"
title="Federal Scholarship Tax Credit Calculator">
</iframe>
Embedded calculator includes a small attribution link to EducationSuperHighway. No separate license required.
Ready To Turn Your Tax Dollars Into Opportunity?
Register your interest now. We’ll contact you as soon as the FSTC takes effect on January 1, 2027, with everything you need to donate. Every dollar goes directly to first graders who need a path to literacy.
