More than 120 million taxpayers could claim education freedom tax credit in 2027, report estimates
Caroline MolloyA new analysis estimates that 121.5 million U.S. taxpayers could have enough federal income-tax liability to claim at least part of the Education Freedom Tax Credit when the program begins in 2027.
The American Federation for Children Growth Fund said the figure represents about 74 percent of U.S. tax filers. The estimate is based on recently released IRS Statistics of Income data and is intended to measure the potential donor pool rather than predict how many people will actually participate.
The federal program allows individual taxpayers to claim a dollar-for-dollar income-tax credit of up to $1,700 for contributions to approved scholarship granting organizations. Those organizations can use donations to provide K-12 scholarships for eligible educational expenses, including private-school and homeschooling costs.
The report estimates that about 100.5 million taxpayers could have at least $1,700 in federal income-tax liability in 2027, potentially allowing them to claim the full credit. Another 21.1 million could be eligible to claim a smaller amount based on their tax liability.
States must opt in before students in those states can receive scholarships through participating organizations. The report said 31 states had opted in or signaled an intention to participate as of September.
CatholicVote President and CEO Kelsey Reinhardt told Zeale News that the credit could create a new source of support for Catholic schools if Catholic taxpayers choose to participate.
