How much of the credit can you use?
The Education Freedom Tax Credit is worth up to $1,700 per individual; up to $3,400 for a married couple filing jointly if each spouse gives $1,700, under proposed rules, but it can only lower the federal income tax you owe. Two questions tell you what you could use for 2027 and what carries forward.
An estimate, not tax advice. Talk with your tax professional about your own return.
Three things worth knowing before you give.
It is a credit, not a deduction.
A deduction lowers the income you are taxed on. A credit lowers the tax itself. A $1,700 gift could mean a credit of up to $1,700, limited to the federal income tax you owe and only once ECF is on Tennessee's SGO list.
It cannot go below zero.
If you owe $900 in federal income tax, you can use $900 for that year. The other $800 waits for a later year, for up to five years.
Couples give separately.
On a joint return, each spouse has their own limit of up to $1,700, under proposed rules. Each spouse makes their own gift, and ECF sends each one a receipt. Giving from a joint account is a question for your tax professional.
Under proposed rules (REG-117199-25, published October 2, 2026). As of October 18, 2026. Final rules have not been issued and may change. Up to $1,700 per individual; up to $3,400 for a married couple filing jointly if each spouse gives $1,700, under proposed rules, limited to the federal income tax you owe. If your state gives you a state tax credit for the same gift, your federal credit is reduced by that amount. Gifts qualify once Education Choice Fund is on Tennessee's SGO list, and only for gifts made on or after January 1, 2027.
This is an estimate, not tax advice. Talk with your tax professional about your own situation.