Every year, the money you owe in federal taxes leaves your hands and disappears into the general fund. Starting January 1, 2027, up to $1,700 of it can go somewhere you can actually see: a scholarship for a child at a Jewish day school or yeshiva. You donate to JEFA, we fund the scholarship, and when you file, every dollar comes back off your federal bill — a true dollar-for-dollar credit, not a deduction.
Give any amount up to $1,700 to JEFA on or after January 1, 2027, and choose the Jewish school you'd like your gift to support. It takes a few minutes, and you can give by card, check, bank transfer or payroll deduction.
JEFA verifies each family's eligibility under the federal rules, awards the scholarship, and pays the school directly. At least ninety cents of every dollar you give becomes scholarship money — federal law requires it, and our annual audit confirms it.
It arrives automatically after you give, and it carries the donor number you'll need at filing time. Keep it with your records for three years, the same way you would for any other part of your return.
File Form 8525 with your federal return and list your donor number on it. The full amount of your donation comes off what you owe. Not a percentage of it — the whole thing.
A deduction only trims the income you're taxed on, while this credit comes straight off the tax you owe.
In March she donates $1,700 to JEFA and directs it to the day school around the corner from her office. When she files, her bill drops to $7,300. Her entire gift came back — and a student she has never met is sitting in a classroom partly because of it.
Most years, about $1,500 comes back to him after filing. The credit doesn’t care whether you owe at filing time — it reduces the tax you owed across the whole year. So after donating $1,700, Aaron’s refund grows to $3,200.
Assumes sufficient federal income tax liability to claim the full credit and an eligible donation.
She donates the full $1,700 anyway. The credit brings her bill to zero this year, and the remaining $600 carries forward — she’ll use it next year, or any year within the next five.
They each donate $1,700 in their own name, and together they claim $3,400 on their joint return. Two gifts, two credits, one family’s full amount.
David enrolls in his employer’s payroll donation program, contributing just $65.38 from each of his 26 biweekly paychecks. With properly adjusted federal tax withholding, his take-home pay can remain unchanged while he helps fund scholarships.
These are illustrations, not tax advice. What you can claim depends on your own federal tax liability — talk to your tax professional about your situation.
Yes — this is one of the most common misunderstandings about the credit. A refund just means you paid in more during the year than you owed. The credit reduces what you owed, so your refund grows by the amount you gave. Aaron, above, is exactly this case.
Not for the federal credit — January 1, 2027 is the line, set by the law itself. A December gift is still a generous one; it just falls under the ordinary deduction rules instead.
A business can give, but only individuals can claim this credit. If you own a business, give personally.
Not for this credit. Federal law counts only gifts of money: cash, a check, a debit or credit card, a bank transfer or payroll deduction.
No. You can choose the school your gift supports, but you can't choose the child — federal law draws that line deliberately, and JEFA makes every award under the same eligibility rules for every family.
At least 90 cents of every dollar, by federal law. The remainder covers the verification, compliance and reporting work the law requires of us — and our annual audit confirms the split.
No. JEFA is an independent 501(c)(3) nonprofit. The credit is federal law; the charity, and the community behind it, are ours. No government program touches a school's curriculum, mission or beliefs through this credit.
Give the full amount anyway if you'd like — whatever credit you can't use this year carries forward for up to five years, so nothing you give is lost.
The credit opens January 1, 2027, and the schools are counting on the first year. Pre-register now and we'll email you the moment donations open, along with everything you'll need at tax time — so your gift, and your credit, are locked in from the start.
