Dear colleagues,

You've probably heard about the new federal scholarship tax credit arriving in January 2027. Here's the short version, and why it's especially practical for those of us on payroll.

Every taxpayer can direct up to $1,700 per year of federal taxes they already owe into scholarships for students, and receive it all back as a dollar-for-dollar tax credit. For employees, there's a payroll option that makes this remarkably painless: a small amount from each paycheck (about $65 biweekly) funds your contribution, while a matching adjustment to your own W-4 withholding keeps your take-home pay the same. Same paycheck, all year, and roughly $1,700 in scholarships generated for students in our community.

The K-12 Scholarship Foundation handles everything: enrollment, the W-4 instructions (it's always your own election, changeable any time), processing, receipts, and federal compliance. At least 90% of all funds become scholarships, by law.

If your own children attend an eligible school, your household can also apply for scholarships; eligibility reaches up to 300% of area median income, which covers most families.

Details, a paycheck calculator you can try with your own paystub, and sign-up: stbrigid.k12scholarshipfoundation.org

Sr. Margaret Doyle
Head of School, St. Brigid Academy