Frequently Asked Questions

No. This is one of the most common misconceptions. The Education Freedom Tax Credit is a credit, not a deduction. It reduces your tax bill dollar-for-dollar, regardless of whether you take the standard deduction or itemize. If you owe federal taxes, you can benefit.

A deduction reduces your taxable income — its value depends on your tax bracket. A credit directly reduces your tax bill. A $1,700 credit means $1,700 less owed to the IRS, no matter what bracket you're in. That's why this program is so powerful — $1,700 donated = $1,700 saved.

The federal Education Freedom Tax Credit is non-refundable. This means it can reduce your tax bill to zero, but you won't receive the difference as a cash refund. If you typically owe $900 in federal taxes, your effective credit would be $900 — not $1,700. We recommend consulting your tax advisor to determine how much to donate based on your expected tax liability.

The Education Freedom Tax Credit was signed into law on July 4, 2025 as part of the One Big Beautiful Bill Act. It takes effect for tax year 2027 — meaning donations made in 2027 will generate credits on your 2027 federal tax return. Register now and we'll notify you the moment donations open.

No — you cannot double-dip on a single donation. However, you can make two separate donations: one to claim a state tax credit through a state-approved SGO, and a second donation through Liberty Education Fund to claim the federal credit. Consult your tax advisor for the optimal strategy for your state.

No income limit. Any taxpayer who owes federal income taxes is eligible to donate and receive the credit, regardless of income level.

Yes. That's what sets Liberty Education Fund apart from most SGOs. You can designate any eligible private K–12 school in our directory. Your donation will fund scholarships at that specific school. You cannot, however, designate a specific student — this is required by federal law to ensure scholarships are awarded on a need basis.

Liberty Education Fund distributes your donation to your chosen school as a scholarship for an eligible student. To qualify, students must come from households earning no more than 300% of the federal poverty level. Scholarships can cover tuition, fees, books, transportation, and other qualifying education expenses.

At least 85% of every donation goes directly to student scholarships. The remaining amount covers our operating costs — payment processing, compliance, administration, and outreach. Our financials are published annually.

Immediately. The moment your donation processes, an official tax receipt is sent to your email address. It includes your donation amount, date, our EIN, and step-by-step instructions for claiming your credit. You don't need to wait until January or request documentation separately.

Contact us at contact@libertyeducationfund.org and we'll look into adding it. Schools must be private K–12 institutions in a state that has opted into the federal program. We're actively expanding our directory ahead of the 2027 launch.

We accept ACH bank transfer (recommended) and major credit cards. Bank transfer is our recommended method — processing costs drop from ~$50 to $5 per donation, keeping an extra $45 with students instead of with the payment processor. Both methods are fully secure.

Credit card processing fees run approximately 2.9% — on a $1,700 donation, that's nearly $50 going to the payment processor before any scholarship is funded. ACH bank transfer costs a flat $5. By choosing bank transfer, you ensure 97%+ of your donation reaches students. We'll always offer both options, but bank transfer is the more efficient choice.

When paying by credit card, we offer an optional checkbox to add a small percentage to cover processing fees. This is completely voluntary — checking it means 100% of your intended $1,700 reaches students. If you leave it unchecked, a small portion covers fees. Either way, your tax credit amount is based on your total donation.