Federal Scholarship Tax Credit

A Trusted, Locally Led Scholarship Granting Organization Dedicated to Serving Memphis Schools and Families.

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Turn Your Tax Dollars into Scholarships for Memphis Students at Zero Cost

Beginning January 1, 2027, a new federal policy allows individuals to redirect a portion of their federal taxes to fund scholarships for students through approved Scholarship Granting Organizations like MOST.

This is one of the most significant new opportunities to support education in Memphis at no additional cost to you, while keeping your tax dollars invested locally to benefit Memphis students instead of sending them to the federal government.

FSTC Information Sheet Overview

MOST's FSTC Guide to General Information

MOST Information Slide Deck

Do you want to help improve education in America and lower your federal taxes?

How It Works: 3 Simple Steps

How it Works: Step 1

 You can choose to redirect up to $1,700 of the federal income taxes you already owe, or up to $3,400 for married couples filing jointly, through MOST to support scholarships at the school of your choice.

Instead of sending those tax dollars to the federal government, you can use them to create brighter futures for Memphis students. 

How it Works: Step 2

Families will apply for the FSTC scholarship on the MOST website by clicking the link above.

To qualify, a family's household income must be at or below 300% of the Area Median Income (AMI). In Memphis, this is estimated to be approximately $240,000 annually for a family of four, making scholarships available to a broader range of families.

How it Works: Step 3

FSTC scholarships will be awarded based on available funds and may be used with other aid. More students gain access to the education that best fits their needs.

What Is the Federal Scholarship Tax Credit?
The Federal Scholarship Tax Credit allows individuals to receive a dollar-for-dollar federal tax credit up to $1,700 per year when they contribute to an approved Scholarship Granting Organization (SGO) like MOST. Those funds are then used to provide
private school scholarships for K -12th grade
students.
What is the difference between a Tax Credit and a Tax Deduction?

Tax Deduction

  • Reduces your taxable income

  • You only get back a portion of what you give 

  •  

Tax Credit

  • Reduces your taxes dollar for dollar
  • You get back 100 percent of your contribution
Why This Is “No Cost” to You?

Most households earning $75k+ already pay at least $1,700 in federal income taxes annually.

This creates a simple choice:
Send that $1,700 to the federal government or redirect that same $1,700 to provide scholarships for Memphis students

Because you already owe these taxes, this is not an additional expense. It is simply choosing where your tax dollars go.

You also have the ability to designate which private school, from MOST’s 42 partner schools, you would like your contribution to support through scholarships.

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