Access a new federal tax credit for education.
The Federal Scholarship Tax Credit (Section 25F) lets you make an after-tax contribution of up to $1,700 to a scholarship organization and receive a dollar-for-dollar federal tax credit for it. FSTC.ai makes it easy to participate through your employer's payroll.
Estimate your credit
Use the eligibility calculator to get an educational estimate of your federal tax credit capacity based on your filing status and income.
Simple enrollment
Complete a guided enrollment wizard in minutes. Choose your contribution amount, select an SGO, and sign a digital authorization.
Paycheck transparency
See exactly how your contribution affects each paycheck before you enroll, with clear per-pay-period and annual totals.
Withholding guidance
Get educational guidance on adjusting your federal W-4 withholding based on your anticipated tax credit, potentially offsetting paycheck impact.
How it works for employees
Estimate
Use the calculator to estimate your federal tax liability and potential credit capacity under Section 25F.
Enroll
Choose a contribution amount, select an approved SGO, and sign a digital authorization through the enrollment wizard.
Contribute
Contributions are deducted from your paycheck automatically each pay period and routed to your selected SGO.
Claim
At tax time, use your contribution records to claim the federal tax credit on your annual tax return.
SGO partners for 2027 are being finalized.
Good to know
The credit is nonrefundable
If your federal tax bill is smaller than your contribution, you may not be able to use the full credit in one year. Unused credit can be carried forward for up to five years.
Watch your withholding
If you lower your W-4 withholding and your tax bill turns out smaller than expected, you could owe money when you file. Review your situation before changing your W-4.
State participation matters
Contributions must go to a scholarship organization in a state that participates in the program.
State credits reduce the federal credit
The federal credit is reduced by any state tax credit you claim for the same contribution.
See it in action.
Try the employee enrollment flow with sample data.