AN EASY, IMPACTFUL INVESTMENT

The federal tax credit allows individuals to donate up to $1,700 to a Wisconsin school of their choice and receive an equal amount back in their federal taxes. These donations fund scholarships that support students in public, charter and private schools – helping with tutoring, offsetting the cost of extracurriculars or making tuition more affordable. It is not clear yet if a couple filing a joint return is limited to $1,700 or will be allowed to claim a $3,400 credit. The answer will be resolved when the Department of Treasury completes the rules making process. 

Unused credits can be carried forward and utilized against future federal taxes for five years.

Yes, and the unused credits can be carried forward and utilized against future federal taxes for five years.  Alternatively, the excess amount over the $1,700 can be claimed as an itemized charitable contribution as a regular deduction on the tax return.   

Assuming Wisconsin opts into this new program, eligible contributions start Jan. 1, 2027.  

All students below a certain household income level can benefit, regardless of the type of school they attend. For example, public school students may receive help for academic support or extracurricular activities, while private school students may also use scholarships to reduce tuition costs. Qualified expenses include tuition, fees, books, supplies, equipment tutoring and other supplementary services. 

Students can receive the scholarship if their household income does not exceed 300% of their county’s median income. You can find the median household income for Wisconsin counties here.

Federal law does not allow donors to designate a specific student, only the school. Pay It Forward Wisconsin will select students that stand to benefit most based on information received from the school.   

You can pledge your intent to donate by selecting a school and entering your pledge amount (up to $1,700 per individual/$3,400 a couple). Although donations won’t be accepted until 2027, pledging now helps demonstrate strong public support to Wisconsin lawmakers.  You are not legally obligated to fulfill your pledge. 

No problem! Pay It Forward Wisconsin will direct your donation to schools in your area that serve children in poverty and have shown success in improving reading and math proficiency. Business leaders alongside education experts will examine data to ensure the scholarships are deployed in schools and for students that yield the greatest return on investment for the child and Wisconsin’s future workforce.

An SGO must be fully independent from schools and serve at least two schools and 10 students, according to the law. Pay It Forward is serving all students and schools across Wisconsin to keep administrative expenses low, with over 95% of donations going directly into the classroom. Pay It Forward will be subject to an annual audit from an independent accounting firm.