Who Is Eligible for the Education Freedom Tax Credit? - AFC Scholarship Fund

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

Who Is Eligible for the Education Freedom Tax Credit?

The Education Freedom Tax Credit gives taxpayers up to a $1,700 dollar-for-dollar federal tax credit when they donate to a qualified scholarship granting organization (SGO).

What Is the Education Freedom Scholarship Tax Credit?

The Education Freedom Tax Credit allows taxpayers to receive a dollar-for-dollar federal tax credit—up to $1,700 per taxpayer—when they donate to a qualified scholarship granting organization (SGO).

Those donations are then used to provide private K–12 scholarships to families, helping students access the education that’s right for them.

This is a tax credit, not a deduction, meaning it directly reduces what you owe in federal taxes

Who Is Eligible to Claim the Tax Credit?

Individual Taxpayers

Most individual taxpayers are eligible if they:

  • Owe federal income taxes, and
  • Make a contribution to a qualified scholarship granting organization.

You don’t need to be a parent. You don’t need to own a business. And you don’t need special tax status. If you pay federal income taxes, you can likely participate.

Married Couples Filing Jointly

Married couples filing jointly may each be eligible for the credit, depending on how they file and contribute.

That means a household may be able to direct up to $3,400 toward scholarships.

Small Business Owners and Pass-Through Filers

Many small business owners—including those filing as:

  • Sole proprietors
  • LLCs
  • S-corporations

All may also be eligible, depending on how their income flows through their personal tax return.

This makes the credit especially relevant for tax-aware professionals who already plan ahead.

How Much Can You Claim?

  • Up to $1,700 per taxpayer
  • The credit is dollar for dollar
  • You can only claim up to the amount of federal income tax you owe

Example:
If you owe $2,000 in federal taxes and donate $1,700 to a qualified SGO, your tax bill drops to $300.

Who Is Eligible to Receive Scholarships?

Scholarships funded through the tax credit are designed to reach families who need them most—while still being broadly available.

Student Eligibility Basics

In general, students are eligible if their family income is at or below 300 percent of the median income in their area.

In practical terms, this means:

  • Approximately 90 percent of American students qualify
  • Eligibility includes many middle-income families, as well as lower-income families

Scholarships can be used for:

  • Private school tuition
  • Fees
  • Tutoring and other qualified education expenses

What If I’m Not Sure I Qualify?

That’s normal—tax rules can feel complicated at first. The good news is that eligibility is much broader than most people expect.

Why This Matters

For most taxpayers, federal taxes feel like a one-way street. The Education Freedom Tax Credit changes that.

Instead of sending every dollar to the IRS, you can:

  • Choose where some of your tax dollars go
  • Help a student access an education that fits their needs
  • Do it with no additional cost beyond taxes you already owe

Understanding eligibility is the first step. Acting is always your choice.

Next Steps

If you’re tax-aware and looking ahead to the coming year, now is the right time to understand where you fit.

Get notified when the Education Freedom Tax Credit launches so you don’t miss the opportunity to support K–12 students while benefiting from a federal tax credit.

Optional. For text alerts (if you opt in).
By providing your phone number and submitting this form, you are consenting to receive SMS/MMS messages including donation asks and school choice news. Message & data rates may apply.

What's Next

Stay informed with our latest articles, news, and scholarship stories.

Articles
Tommy Schultz

A Mother’s Fight: When Every Door Closes, School Choice Opens One

Tamica tried everything to find the right school for her son George — public school, charter school, and hitting financial walls at every turn. It wasn’t until a tax credit scholarship opened the door to Crossover that everything changed. This is the story of a mother who refused to give up, and a school that refused to give up on her son.

Read More »
Military family with parents and daughter smiling together beside text reading “School choice changed everything for this military family.”
Articles
Tommy Schultz

School Choice Changed Everything for This Military Family

Carol Day has followed her husband’s military service across the country, sacrificing stable income, good schools, and roots every time orders came through. When she finally discovered school choice scholarships for her daughter Savannah, the funding had already run out. This is her story — and why the Education Freedom Tax Credit matters for every military family navigating the same impossible choices.

Read More »