Heads up. There is a brand new federal tax credit landing on January 1 2027, and it is the first nationwide school choice program the country has had. Treasury and the IRS put out the rules on October 1. The short version - A person gives cash to a certified scholarship organization and gets a federal credit back, dollar for dollar. - Up to 1,700 dollars per person, 3,400 dollars on a joint return. - It is nonrefundable, and it only works if your state signed up. Thirty states are in so far. - It gets claimed on a new Form 8525 attached to the Form 1040. The date is the part people are going to get wrong It does not apply to the 2026 returns you are about to prepare. The law reaches taxable years ending after December 31 2026, and a 2026 year ends on that date. So the first return that carries this credit is tax year 2027, the one you file in early 2028. Which also means the money has to move in 2027. A client who donates in November or December 2026 gets nothing for it. If somebody in your office is already excited about this, tell them to wait until January. That one sentence will save a client 1,700 dollars. The full breakdown is already in the Classroom side of the house I wrote the whole thing out in OBBBA and Law Changes, from the beginning. What counts as a qualifying organization, the income test for students, the two traps that quietly cancel the credit, the donor number you cannot file without, and what the statute of limitations actually is. Go read it there. One more date, if you want a say These rules are proposed, not final. Comments close December 1 2026 and there is a public hearing on December 15. If you prepare in a state that already runs its own scholarship credit, you are going to see the problem with this before Washington does. You are allowed to tell them. Where this comes from - Proposed regulations, Federal Scholarship Tax Credit, REG-117199-25, 91 FR 62818, October 2 2026. - Temporary regulations, TD 10057, 91 FR 62655, October 2 2026. - IRS news release IR-2026-117, October 1 2026. - Internal Revenue Code section 25F, added by section 70411 of Public Law 119-21.