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Scholarship Tax Credit FAQ

Straight answers about the federal scholarship tax credit, for donors and families.

Last updated November 2026. General information only, not tax advice.

For donors

Can I donate if I live in another state?

Yes. The federal credit is available to taxpayers in every state, and you can give to an SGO in any participating state regardless of where you live.

What is a Scholarship Granting Organization (SGO)?

An SGO is a 501(c)(3) charity that collects donations and awards K-12 scholarships. To take part in the federal program, it must appear on the list a participating state sends to the IRS. Give for Kids Scholarship Fund is a state-certified SGO.

What is the difference between a tax credit and a deduction?

A deduction lowers your taxable income, so it saves you only your tax rate times the gift. A credit lowers your tax bill itself, dollar for dollar.

When can I start giving for the federal credit?

Federal credit donations count starting January 1, 2027.

How much can a married couple claim?

Federal: up to $3,400 if each spouse gives up to $1,700 (proposed IRS regulations).

Can I combine the federal credit with a state credit?

Yes, but not on the same dollars. The federal credit is reduced by any state credit claimed for the same qualified donations, so make separate gifts for each credit.

Can I give from my donor-advised fund or business?

Those gifts are welcome but generally do not qualify for the federal credit, which is for individuals giving their own money. A partner's share of a partnership gift does not count.

Can I choose which student or school my gift supports?

No. The law does not allow donations to be earmarked for a particular student. Gifts are pooled and awarded by our scholarship process.

How do I know my donation is used for scholarships?

Federal law requires an SGO to spend at least 90% of its tax-credit income on scholarships for eligible students. We are also certified annually by our state.

What paperwork will I get?

A receipt for every gift. For federal credit gifts, we also send a written acknowledgement with your unique donor number by January 31 of the following year.

Do you accept cash?

No. We accept online gifts and checks payable to Give for Kids Scholarship Fund, so every gift has a clear record for your tax return.

For families

Who is eligible for a scholarship?

K-12 students living in a state where we award scholarships (currently Ohio, with more states planned) whose household income is no more than 300% of their area's median income.

Does my child have to attend a private school?

No. Students in public, charter, and private schools can qualify. Public school families can use scholarships for costs like tutoring, books, and technology.

What expenses can a scholarship cover?

Qualified education expenses such as tuition, books and supplies, tutoring, special needs services, uniforms, transportation, extended day programs, and computers or internet access.

Are preschool, college, or homeschool students eligible?

The federal program covers students enrolled in grades K-12 at a public or private school. Preschool and college are not included.

When can we apply?

Applications for the 2027-2028 school year open in early 2027. Email us to join our interest list and we will let you know.

Who gets priority?

Students who received a scholarship the previous year come first, then their siblings.

Is the scholarship taxable to our family?

Scholarships for qualified education expenses are generally not taxable income to the family. Check with your tax advisor.

Still have a question? Email giveforkidsscholarshipfund@gmail.com.
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