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. Each spouse may claim up to $1,700, for a combined credit of up to $3,400, if each spouse makes at least $1,700 in qualifying contributions.

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 operate independently from schools and provide scholarships for eligible students attending at least two schools. Pay It Forward Wisconsin designed to serve all K-12 students across Wisconsin to keep administrative costs low. At least 90% of donations will go directly into the classroom. Pay It Forward Wisconsin will also undergo an annual audit by an independent accounting firm.