A new federal scholarship may help with tuition.
A federal tax credit for private school scholarships starts January 1, 2027. Here is what we know so far, and what is still not decided.
You should not have to guess at this.
A 2025 federal tax law created a scholarship tax credit that begins January 1, 2027. It works through non-profit groups called scholarship granting organizations. A taxpayer gives to one of these groups and gets the same amount taken off their federal taxes, up to $1,700 a person. The group then gives the money to families as tuition scholarships.
Many North Shore families would qualify. A household qualifies if it earns up to 300% of the area’s median income. On Long Island the median for a family of four is around $164,000, so the limit is close to half a million dollars. Here, this is not only a program for low-income families.
The timing is tight. Each state has to choose to take part. New York’s governor said on October 9 that New York will. The state has to file that choice with the IRS by January 1, and its list of approved scholarship groups is due February 15. That is a few weeks after you would be choosing a school for September.
We will not promise what is not final. New York has announced its choice and has not filed it yet. No scholarship group is working with us yet, and we do not have a scholarship fund of our own. Scholarships are a goal for us, not a promise. We will tell you the day anything is official, and we will go through the real numbers with you before you sign anything.
Under the new credit, a taxpayer can give up to $1,700 to an approved scholarship group and take the same amount off their federal taxes. The money goes to families as tuition scholarships.
The group decides who gets a scholarship. A gift cannot be set aside for one particular child.
It is a credit, not a deduction: up to $1,700 a person, starting with the 2027 tax year.
New York has not published its list of approved groups. If you want to hear when there is a way to give, write to hello@soundlineschool.com and we will tell you.
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