Beginning Jan. 1, 2027, a new federal Education Freedom Tax Credit will give taxpayers an opportunity to support K–12 students while receiving a dollar-for-dollar federal income tax credit of up to $1,700 per taxpayer. Married couples filing jointly may receive a combined credit of up to $3,400 when each spouse makes a qualifying contribution.
Unlike a tax deduction, a tax credit directly reduces the amount of federal income tax owed.
Under the program, taxpayers may make qualifying contributions to an approved Scholarship Granting Organization (SGO), which will use those contributions to provide scholarships for eligible students.
The Diocese of Charlotte’s Catholic Schools office is working with colleagues in the Diocese of Raleigh to establish the appropriate SGO structure. Within the SGO, each Catholic school will have a designated fund, allowing taxpayers to direct their contribution to a particular school. More details will be available soon.
Taxpayers may contribute to an eligible SGO regardless of their state of residence, creating an opportunity for parents, grandparents and alumni across the country to support schools in the diocese.
— Catholic News Herald