Yes. Participation is voluntary and can be adjusted year to year. There is no long-term contract or permanent obligation. Taxpayers choose whether to make a qualified contribution during a given tax year, and that decision applies only to that year’s participation. If you adjust payroll withholding or estimated payments to reflect the credit, those adjustments...
Businesses may support Well Planned Education through traditional charitable contributions. However, the federal tax credit established under the Educational Choice for Children Act (ECCA) is currently available only to eligible individual taxpayers. This means businesses do not receive the federal tax credit for contributions made under this program. Any business contribution would be treated as...
The ECCA redirection tax credit is structured primarily for individual taxpayers. Businesses cannot use the individual ECCA tax credit unless federal law specifically allows it for their entity type. However, Well Planned Education is a nonprofit organization. Businesses may fully support student scholarships by making traditional charitable donations. Those contributions may qualify as a charitable...
Yes. Individuals may choose to contribute more than the annual federal tax credit limit. However, only contributions up to the allowable federal tax credit cap are eligible for the corresponding tax credit in a given year. Any amount contributed above the federal limit would be treated as a standard charitable contribution subject to applicable tax...
Yes. Married couples filing jointly may redirect up to $3,400 per year combined. If filing separately, each spouse may be eligible to redirect up to $1,700, subject to federal guidelines and their individual tax liability.
To redirect the full $1,700, you must owe at least $1,700 in federal income taxes for the year. You can only redirect up to the amount of federal tax you owe. For example: Even if you usually receive a refund, you still have a total tax amount listed on your federal tax return. The credit...
No. This does not raise your taxes. Under ECCA, individuals may choose to direct a portion of the federal income taxes they already owe into student scholarships. The total amount of tax you owe does not increase. The destination of a limited portion of it changes. Participation is voluntary and structured within existing federal tax...
Participation happens through a qualified contribution to an approved Scholarship Granting Organization (SGO), such as Well Planned Education. During the 2027 tax year, individuals may choose to make a one-time, quarterly, or monthly contribution — up to the federal limit. Those contributions generate a federal tax credit that is applied to your 2027 federal income...
Under ECCA, individuals may redirect up to $1,700 per year. Married couples filing jointly may redirect up to $3,400 per year. These limits are set by federal law and cannot be exceeded.
No. Individual taxpayer participation is not publicly disclosed. Qualified contributions made under ECCA are administered through approved nonprofit Scholarship Granting Organizations. Personal tax information remains protected under federal privacy laws, just as it does with any other tax credit or charitable contribution. Well Planned Education does not publish the names of participating taxpayers without explicit...
If a taxpayer contributes more than the amount eligible for the federal tax credit, only the portion up to the allowable credit limit will qualify for the dollar-for-dollar federal tax credit. The federal tax credit directly reduces the taxpayer’s federal tax liability. Any contribution above the credit limit does not receive the credit but may...
If you are self-employed or make estimated quarterly tax payments, you may still participate. During the 2027 tax year, you may make a qualified contribution to an approved Scholarship Granting Organization, such as Well Planned Education. That contribution generates a federal tax credit that applies to your 2027 federal income tax liability when you file...
If federal income taxes are withheld from your paycheck, you may still participate. The ECCA credit applies to your total federal income tax liability for the year — not just the amount withheld from each paycheck. Many taxpayers choose to adjust their withholding during the year to reflect the credit they plan to claim. To...
Taxpayer participation under ECCA begins January 1, 2027. Qualified contributions made during the 2027 tax year may be applied as a federal tax credit when individuals file their 2027 federal income tax return in 2028. Preparation and education may occur prior to 2027, but official qualified participation begins with the 2027 tax year. Updates will...
No. Individual taxpayer participation is not publicly disclosed. Qualified contributions made under ECCA are administered through approved nonprofit Scholarship Granting Organizations. Personal tax information remains protected under federal privacy laws, just as it does with any other tax credit or charitable contribution. Well Planned Education does not publish the names of participating taxpayers without explicit...