Federal Scholarship Tax Credit Calculator (§25F)
Estimate your $1,700 federal scholarship tax credit. Because the credit is non-refundable, it can only offset tax you actually owe, this calculator estimates your federal tax liability first, then shows how much of your donation you can credit this year and how much carries forward.
Gross annual income. We subtract the standard deduction to estimate taxable income.
The §25F credit is capped at $1,700 per return.
Estimate only, for planning. Uses 2025 federal brackets and the standard deduction; ignores other credits, the AMT, capital-gains rates, and state tax. Not tax advice, confirm with your return or a tax professional.
How this works
- Enter your filing status and income, or, if you know it, your exact federal tax liability.
- We estimate your federal income tax using the 2025 brackets and standard deduction (the program begins for 2027; brackets are inflation-adjusted each year, so treat this as an estimate).
- The §25F credit is capped at $1,700 per return, and it can never exceed the tax you owe. (Whether married-filing-jointly returns get one $1,700 cap or two is unsettled pending Treasury guidance, we use the conservative $1,700.)
- Anything you donate above what you can use this year carries forward for up to 5 years.
Questions, answered
I have taxes withheld from every paycheck. Can I still use the credit?
Almost certainly yes. What matters is your total federal tax liability for the year, the tax you owe before withholding, not whether you have a balance due at filing. If your liability is at least $1,700, you can use the full credit; the credit simply increases your refund (or reduces your balance) dollar-for-dollar. Withholding does not disqualify you.
Is the $1,700 credit refundable?
No. The §25F credit is non-refundable: it can reduce your federal tax to $0 but cannot create a refund beyond the tax you owed. If your donation exceeds the tax you can offset this year, the unused credit carries forward for up to 5 years.
Can a married couple filing jointly claim $3,400?
It's not settled. §25F caps the credit at $1,700 'for any taxpayer for any taxable year,' and the prevailing expert reading is that a joint return gets a single $1,700 cap. A minority view argues a joint return should get $3,400 (two caps). Treasury has flagged the joint-filer treatment as an open question and hasn't ruled, so plan conservatively at $1,700 and confirm with a tax professional before relying on $3,400.
Are these the exact numbers I'll owe?
No, this is an estimate for planning. It uses the 2025 federal brackets and standard deduction and does not account for credits, the AMT, capital-gains rates, or state tax. For an exact figure, check last year's return or ask your tax advisor.
Learn more
- The federal tax credit, explainedHow the Education Freedom Tax Credit (EFTC / §25F) works for donors: $1,700 per tax return, 5-year carryforward, non-refundable, cash only, no double-deduction with §170, plus worked examples.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax Credit (FSTC) and codified at IRC §25F. How the federal scholarship tax credit works, who qualifies, when it begins, and what state participation means.
- EFTC timeline & key datesA dated roadmap of the federal Education Freedom Tax Credit (EFTC / ECCA / §25F): when it was enacted, when states make the advance election and submit SGO lists, when donations begin counting, and when donors claim the first credits.
- EFTC vs. state scholarship tax creditsHow the federal EFTC tax credit compares to existing state-level scholarship tax credit programs, whether donors can stack the two, and what families should know about each.
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