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 tax liability when you file your return in 2028.
In simple terms:
You make your qualified contribution during 2027. When you file your 2027 tax return in 2028, that amount is applied directly against the federal income taxes you owe for that year.
Taxpayers may choose to adjust paycheck withholdings or estimated payments during the year to reflect the credit. For example, someone redirecting the full $1,700 could adjust withholding by approximately $144 per month. Individual situations vary, so consulting a tax professional is recommended before making adjustments.
Participation is voluntary and structured within federal law.
