How to Redirect Up to $3,400 of Your Federal Taxes to Help America's Kids -- at $0 Net Cost
A 2027 Tax Planning Handout From Your Tax Professional & SparkScholar (501(c)(3) EIN 41-3848494)
$3,400 / $1,700
100% Federal Tax Credit ($3,400 Married Filing Jointly; $1,700 Single) starting Jan 1, 2027 under IRC § 25F.
$0 Net Cost
Dollar-for-Dollar Redirect: Every dollar you contribute reduces the federal income tax you already owe by $1.00.
93.5% to Kids
Direct K–12 Impact: SparkScholar sends 93.5% of every dollar straight to Texas private school & homeschool scholarships.
What Is an SGO, and What Is SparkScholar?
Starting January 1, 2027, a new federal tax law (Internal Revenue Code § 25F) gives every American taxpayer a remarkable choice: instead of sending all of your federal income tax bill to Washington, D.C., you can redirect up to $1,700 per taxpayer ($3,400 for married couples filing jointly) into a certified nonprofit Scholarship Granting Organization (SGO) and receive a 100% dollar-for-dollar federal tax credit.
SparkScholar (the P. Davis Jones Scholarship Initiative, IRS 501(c)(3) EIN 41-3848494) is a Texas-based SGO built to make this tax credit effortless for families and their tax preparers. Rather than spending your money on overhead, SparkScholar caps administration at just 6.5% so 93.5% of every dollar ($3,179 on a $3,400 joint contribution) goes directly into K–12 tuition scholarships and qualified educational expenses for Texas children in households earning up to 300% of Area Median Gross Income (covering 96.5% of Texas families).
How It Works in 3 Seamless Steps (Under 90 Seconds)
Step 1
Visit sparkscholar.org
Choose your federal tax redirect amount -- up to $1,700 (Single) or $3,400 (Married Filing Jointly). You can also optionally share a partner school or scholarship preference.
Step 2
Select Your CPA or Tax Planner
In the checkout dropdown, simply type and select your CPA or tax professional's name from our Certified Tax Professional list. (We never ask for your Social Security Number.)
Step 3
Automatic Form 8525 Delivery
The moment your contribution settles, SparkScholar automatically emails your official IRS Form 8525 Tax Credit Receipt to both you and your CPA's inbox -- zero paperwork to chase in April!
Frequently Asked Questions for Taxpayers
How is a 100% Tax Credit different from a deduction?
A charitable deduction only lowers your taxable income (and gives $0 benefit if you take the standard deduction). A 100% tax credit reduces your actual federal tax bill dollar-for-dollar. If you owe $10,000 to the IRS and contribute $3,400 to SparkScholar, you now owe the IRS $6,600.
Do I have to give SparkScholar my Social Security Number?
No. Under Treasury Decision 10057, SparkScholar uses a cryptographic Unique Donor Number (UDN) printed on your Form 8525 receipt so your SSN is never collected or stored.
Can I designate my own child for the scholarship?
Federal law (§ 25F(d)(1)(E)) prohibits earmarking a credit contribution for a specific named dependent. However, you may support a Partner School Sub-Ledger, and 96.5% of Texas families qualify to apply for SparkScholar awards.
What if my credit is larger than my tax bill this year?
Under IRC § 25F(d), any unused portion of your federal scholarship tax credit automatically carries forward for up to 5 subsequent tax years.