The Federal Scholarship Tax Credit

Step 1 of 6: The basics

The federal scholarship tax credit is a new federal tax credit for people who give to K-12 scholarships. You give to a nonprofit scholarship organization. When you file your federal taxes, you get a credit for the amount you gave, up to $1,700 per person. A married couple can get up to $3,400 if each spouse gives $1,700 in their own name.

A credit is stronger than a deduction. A deduction lowers the income that your tax is calculated on. A credit lowers your tax bill itself, dollar for dollar. A married couple who owes $10,000 in tax in 2027 and who contributes $3,400 now only owes $6,600 in tax.

New York takes part. Each state had to choose to opt in. Governor Hochul announced on October 9, 2026, that New York will take part.

It starts January 1, 2027. Schools in other states with similar programs tell us the same thing: the communities that understand the program early are the communities that benefit. We want ours to be ready and mobilized on day one.

Step 2 of 6: You give

Who can give? Any U.S. citizen or resident, in any state: parents, grandparents and other relatives, alumni families, friends, neighbors, and colleagues.

A grandparent in Ohio or a sibling in California can support our students at no cost to themselves, if they owe enough federal income tax.

When? Gifts made on or after January 1, 2027 qualify. Gifts in January help us most, because they help us plan tuition support before families make re-enrollment decisions. If $1,700 at once is too much, you can give in monthly installments. Every gift counts, at any amount.

How? We will share our school's giving page on this website when it is ready, along with hands-on sessions.

Good to know:

• Give cash: check, card, or bank transfer. Stock, cryptocurrency, and gifts from a business (a partnership or S corporation) do not qualify.
• Married couples: make two gifts, one in each spouse's name.

Step 3 of 6: Do I owe enough tax?

You must have some federal income tax for the year to use the credit. If you are unsure whether this applies to you, below we present two paths for figuring this out.

Path 1: Look at the tax return you filed for 2025

Check Line 22 on Page 2 of Form 1040. If it's greater than 0, you have some federal income tax. If it's $1,700 or more ($3,400 or more for married couples filing jointly), you can likely use the full credit, all else equal, in 2027.

Path 2: Estimate your 2027 taxes

1. NerdWallet offers a good calculator to estimate your tax. Go there, then follow the steps below.
2. Set the tax year to the most recent one available. It starts out with sample numbers, so replace all of them.
3. Enter your filing status, age, and household income. You can skip withholding, because it doesn't affect this calculation.
4. In the "Tax credits" box, enter $2,200 for each child under 17, plus any other credits you normally claim, like childcare or education credits.
5. Look at the "Estimated federal taxes" section. Look at "Taxes before adjustments" minus "Tax credits" (not the refund or amount owed).

• If it's $1,700 or more ($3,400 or more if married filing jointly), you can likely use the full credit.
• If it's lower but above $0, you can use part of it this year and carry the rest forward for up to five years.
• If it's $0, the credit won't help you this year, though it can carry forward.

Don't use the refund number. Your refund only shows how much was withheld from your paychecks compared with your tax. A family getting a big refund can still have plenty of tax to use the credit against.

This is a rough estimate, not tax advice, so families should check with their tax preparer before giving.

Step 4 of 6: You get it back

You give first and get it back later. A gift you make in 2027 lowers the tax on your 2027 return, which you file in early 2028.

The scholarship organization will send you a letter that confirms your gift. The letter shows your unique donor number. Keep it. You need it for your tax return.

• You do not need to itemize. The credit works with the standard deduction.
• The credited part is not also a charitable deduction. You cannot claim the same dollars twice.
• If you give more than $1,700, the extra amount can count as a regular charitable gift.

Step 5 of 6: Your gift becomes scholarships

The law requires gifts to go through a qualified nonprofit Scholarship Granting Organization (SGO). Our school will work with a partner scholarship organization that serves Waldorf schools across the country. You will give through our school's giving page, so that your gift supports students at our school.

Of every dollar you give:

• 90 cents becomes scholarships for our students.
• 7 cents pays the organization to run the program.
• 3 cents comes back to our school at the end of the year.

No gift can name a specific child, including your own. The scholarship organization awards scholarships to eligible students.

What do the scholarships pay for? Tuition, fees, tutoring, books, supplies, and extended-day programs. Tuition goes straight to the school. Your gift helps students attend our school, instead of the school absorbing these costs in its operating budget.

Step 6 of 6: Families apply

A student may qualify if:

• the student is in kindergarten through grade 8 (preschool and nursery are very likely not covered);
• the student lives in New York;
• household income for the prior year is at or below 300% of the area median income, adjusted for family size. For a family of four in Saratoga County, we estimate this limit at about $369,300. The IRS will publish the official figure.

Scholarships are tax-free for the family.

Families apply through the scholarship organization. We expect applications to open in January 2027.

The Board and Finance Committee are working out how scholarships will be awarded and how they combine with the financial aid our school already gives. We will share these policies as soon as they are final.