Talking to your tax professional about donating through CEN SGO

Updated September 28, 2026 · 3 min read

Related guides:: Your receipt and the donor number Get the credit in your paycheck The credit cap: $1,700 per taxpayer
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Most preparers will meet this credit in a client conversation before they meet it in a training. Here's what to hand them.

In brief

The one-pager below gives your preparer the rule and the citation for each point.
Talk before you donate if you file jointly, pay AMT, carry other large credits, or also claim a state credit.
Bring your acknowledgment with the donor number, and your payment record.

The one-pager

Item	Rule	Authority
Credit amount	Aggregate cash donations for the year, capped at $1,700 per taxpayer	§25F(a), (b)(1)
Who can claim	Individuals who are US citizens or residents. No entity credit	§25F(a)
Effective	Tax years ending after December 31, 2026. First claimed on 2027 returns	P.L. 119-21 §70411(c)
Eligible donations	Cash only, to an SGO on a participating state's list	§25F(c)(3), (c)(5)
Timing	Donations made during the tax year. No lookback	§25F(a)
§170 interaction	Credited dollars can't also be deducted	§25F(e)
State credit interaction	No federal and state tax credit on the same donation. A state credit needs a separate donation	§25F(b)(2)
Ordering	Limited by §26(a), after other subpart A credits except §23 and §25D	§25F(f)(1), §26(a)
Refundability	Non-refundable. Five-year carryforward, FIFO, no carryback	§25F(f)
Joint filers	Pending. Statute doesn't address joint returns. Plan on $1,700 per return	§25F(b)(1)
Donor reliance	Expected: donation to a listed SGO generally qualifies even if it later loses status	Notice 2025-70, §3.02
Substantiation	SGO acknowledgment with unique donor number reported on the return	Treasury preview, June 2026
Form	Not yet published. Expected before the 2028 season	IRS

Print this page or send your preparer its link. The table gives the rule and the citation for each point, and our Sources page links to the full text of each law and IRS notice.

What to tell them

You plan to donate up to $1,700 in cash to CEN SGO in 2027. You want the §25F credit, not a deduction, for those dollars. If you also donate to a state program, those are separate donations. You'd like to know whether to adjust your W-4.

Example. Your 2025 return shows $4,800 on line 22. Your income will be about the same in 2027, and you plan to donate $1,700 in January. Your preparer confirms you have room for the full credit. If you're paid every two weeks, they might suggest adding $1,700 in Step 3 of a new W-4, which cuts withholding by about $65 a paycheck. Illustrative figures.

A note you can send

I'm planning to donate up to $1,700 in cash to CEN SGO in 2027 for the federal scholarship credit under §25F. I'd like to claim the credit, not a deduction, for up to $1,700. CEN will send an acknowledgment with a donor number. Can we check that I'll owe enough to use it this year, whether I should change my W-4, and how you'll treat the cap on our joint return until Treasury rules?

If you use tax software

Software can only add the credit once the IRS publishes its form, which is expected before the 2028 filing season. Until then, the software you used for 2025 or 2026 won't show it. When you file your 2027 return, look for the scholarship credit, and have your donor number ready.

What to bring

Your CEN acknowledgment, with your donor number.
Your bank, card or payroll record for each donation.
Any state scholarship receipts, marked as state.
Your last return, so they can see your tax after credits.
Any credit you're carrying forward from an earlier year.

Questions worth asking

Do I owe enough federal income tax, after my other credits, to use the full credit this year?
Should I adjust my W-4, and by how much?
If we file jointly, how are you treating the cap until Treasury rules?
Does AMT affect me?
If I donate more than $1,700, how should the extra be treated?
If I carry credit forward, how much should I donate next year?
How do I document this?

When to talk

Before you donate
Check your room under the cap and your plan for any state credit.
Right after
Decide whether to change your W-4.
Early December 2027
Top up if you're short of $1,700, with time to spare.
Spring 2028
Claim the credit with the donor number.

If you and your preparer see it differently

On the settled points, the statute is short and the citations above lead straight to it. On the open ones, like the joint-filer cap, there's no right answer yet. The careful course is to plan on the lower figure until Treasury rules, and to keep any extra donation for later in the year. (Source: §25F(b)(1))

What they'll want to verify

That CEN SGO is on the state's submitted list for 2027 (states page, and Treasury's published list), your acknowledgment with the donor number, and your payment record. (Source: §25F(c)(5)(D))

Open questions to watch

Joint returns: one cap or two.
Donor-advised fund grants and IRA distributions.
How a carryforward fits with the next year's cap.
The IRS claim form and acknowledgment format.

Treasury said taxpayers can rely on its proposed rules for 2027. (Source: Treasury guidance preview, June 9, 2026)

Next step

Questions about this guide? See them on the FAQ page

Sources: §25F(a), (b)(1); P.L. 119-21 §70411(c); §25F(c)(3), (c)(5); §25F(e); §25F(b)(2); §25F(f), §26(a); Notice 2025-70; Treasury preview, June 2026