Your Taxes. Your Choice. Their Future.
A New Way to Help Families Pay Tuition — Starting in 2027
What if you could help a struggling family pay tuition without increasing your federal income tax bill?
Beginning in 2027, a new federal program will allow eligible taxpayers to receive a dollar-for-dollar federal income tax credit for donations to approved scholarship funds.
Instead of simply paying that money in federal income taxes, you can help families afford Jewish education.
How Does It Work? A Simple Example.
Imagine you buy a $100 appliance in New York City.
With 8.875% sales tax, your total comes to $108.88.
Now imagine the cashier gives you a choice:
Option 1: Pay $108.88, with $8.88 going to the government.
Option 2: Pay the same $108.88, but have that $8.88 go toward helping a family pay tuition instead.
Either way, you spend the same amount. The only difference is where the money goes.
That’s the basic idea behind the new federal scholarship tax credit.
Of course, the actual program applies to federal income taxes, not sales tax. But the principle is similar: eligible taxpayers can direct money toward children’s education and receive an equivalent federal income tax credit.
Give Once or Give Monthly
You don’t need to make one large contribution. You can spread your giving throughout the year.
| Individual | Married couple | |
|---|---|---|
| Annual contribution | $1,700 | $3,400 |
| Monthly contribution | About $142 | About $284 |
| Potential federal tax credit | $1,700 | $3,400 |
Monthly amounts are approximate, with final payments adjusted to reach the annual totals. Each spouse must make a qualifying contribution to receive the combined married-couple credit.
Whether you contribute monthly or once a year, you claim the qualifying credit when filing your federal income tax return.
Why Choose Crown Heights Tuition Fund?
Because we want your contribution to provide real, additional tuition relief to families.
Our approach is simple:
- Parents negotiate tuition directly with their children’s schools and finalize their tuition arrangements.
- Families apply for assistance from Crown Heights Tuition Fund after their tuition is established.
- Approved scholarships are paid directly to the schools and credited toward the families’ existing tuition balances.
This means scholarship assistance is designed to reduce what families already owe, rather than replace the arrangements they have negotiated.
First, you arrange your tuition. Then, we help lighten the burden.
Our goal is to make sure every scholarship dollar provides meaningful relief to families while strengthening Jewish education in our community.
This is our planned scholarship model, subject to approval and applicable program requirements.
Imagine What We Can Accomplish Together
If just 100 married couples contributed $3,400 each, that would generate $340,000 in scholarship funding.
Add 100 single individuals contributing $1,700 each, and that’s another $170,000.
Imagine the difference we could make for families throughout our community.
Frequently Asked Questions
1. Is this really money I would otherwise pay in taxes?
Essentially, yes. A qualifying donation reduces your federal income tax liability dollar for dollar, up to the program’s limits. You must have sufficient tax liability to receive the full credit.
2. Can single people participate?
Absolutely! You don’t need to be married or have children in school. Eligible individuals can receive up to a $1,700 annual credit.
3. Can married couples really receive $3,400?
Yes. Married couples filing jointly may qualify for up to $3,400 combined, with each spouse making a qualifying contribution of up to $1,700.
4. Do I need to contribute everything at once?
No. You can contribute monthly or make one annual contribution. Qualifying contributions are claimed on your federal tax return.
5. What if taxes are already taken out of my paycheck?
You can still qualify. The credit is claimed when filing your taxes and may increase your refund or reduce the amount you owe. Monthly donations do not automatically reduce paycheck withholding.
6. What if I don’t owe enough federal income tax?
The credit is nonrefundable, so it cannot reduce your federal income tax liability below zero. Unused credits may generally be carried forward for up to five years, subject to program rules.
7. How do families receive scholarships?
Our plan is for families to apply after finalizing their tuition arrangements. Approved scholarship funds would go directly to participating schools and reduce the families’ tuition balances, subject to eligibility and program requirements.
8. Can I choose which family receives my donation?
No. The federal program requires scholarship recipients to be selected according to eligibility rules. Donors cannot designate a particular student or family.
9. When can I start contributing?
The program begins January 1, 2027. However, contributions qualify only when made to an approved Scholarship Granting Organization under the applicable rules.
Crown Heights Tuition Fund is preparing to participate but is not yet approved. New York State must also participate for qualifying contributions through a New York organization to be possible.
Together, We Can Make Jewish Education More Affordable
This new opportunity could help bring meaningful financial relief to families throughout Crown Heights.
Your Taxes. Your Choice. Their Future.
Stay informed! Sign up to receive updates as we prepare for the federal scholarship tax credit program.
Important: Crown Heights Tuition Fund is not currently approved for this federal program. Tax-credit eligibility depends on state participation, organizational approval, individual circumstances, and applicable rules. Please consult your tax professional before contributing in reliance on the credit.
