Frequently asked questions

EFTC is a federal tax credit created as part of the One Big Beautiful Bill (signed July 2025) for donations to approved scholarship granting organizations (SGOs) like Kentucky Education Freedom. Unlike a deduction, it reduces your tax bill dollar-for-dollar, up to $1,700 for single filers or $3,400 for joint filers.

Kentucky Education Freedom is already listed as an approved SGO. We're waiting on Treasury's final regulations and the program's January 1, 2027 start date before we can accept gifts. Sign up on our Donor page and we'll email you the moment we can.

A credit — it reduces your federal tax bill directly, dollar-for-dollar, up to the cap. That's generally more valuable than a deduction, which only reduces your taxable income.

The amount above the cap doesn't generate additional federal credit. Depending on your situation, it may be deductible as a charitable contribution if you itemize — ask your tax preparer.

Not for the same dollar. Per Treasury's proposed rules, any state tax credit you claim for a contribution reduces the amount of that contribution eligible for the federal credit, before the $1,700-per-person cap applies. Talk to your tax preparer about which option is better for your situation.

Yes, but it works per spouse: each spouse can claim up to $1,700 based on their own qualified contributions, for up to $3,400 total on a joint return. You don't need to split a single gift exactly in half — just make sure each spouse's own giving is reflected correctly when you file.

Under the proposed rules, employer-facilitated payroll deduction gifts qualify for the credit too — so if your employer offers it, giving straight from your paycheck should count the same as a direct donation.

Generally, students whose household income is at or below 300% of the local area median income, who are eligible to enroll in a Kentucky public school, and who are Kentucky residents. That public-school-eligibility test is a baseline — it doesn't mean your child has to attend public school. Students already in private school or being homeschooled are eligible too, and scholarships can be used for private school tuition or homeschool expenses.

Yes — the income threshold is based on the median income where you live, so it varies by Kentucky county or metro area. Use our Eligibility Pre-Screener on the Family page for an estimate.

Applications are expected to open alongside donations, likely January 1, 2027. Sign up on our Family page and we'll notify you the moment applications open.

A broad range of K-12 education expenses — not just tuition. The EFTC statute defines qualified expenses by cross-reference to the Coverdell ESA rules, which cover tuition at a school of choice (public, private, religious, or charter), academic tutoring, special education and therapy services, books, supplies, required equipment, computer technology and internet access used for school, extended day and summer academic programs, and school-required uniforms and transportation. See our For Families page for the full list. Treasury's detailed guidance is still pending, so exact rules may be refined.

No. It's an estimate based on the most recently published income data, meant to help you understand where you likely stand. Official eligibility is confirmed when you submit a full application.