How much should you contribute in January 2027?

Yes. Receiving a refund does not mean you had no federal income tax liability. The amount refunded is different from the tax calculated on your return.

What it means: This taxpayer receives a $1,000 refund because they paid $5,000 toward a $4,000 tax bill. They still had $4,000 in total tax on line 24. If their 2027 circumstances are similar, they could potentially use the full $1,700 scholarship credit, subject to eligibility, other credits, and applicable rules. If the same figures applied in 2027 and the taxpayer made a qualifying $1,700 contribution and could use the full credit, their federal income tax would drop from $4,000 to $2,300. With the same $5,000 in payments, their refund would increase from $1,000 to $2,700. That $1,700 increase is the tax credit at work, not an extra benefit on top of the credit. Actual results depend on 2027 tax rules, eligibility, other credits, and payments.

This is a nonrefundable credit. It cannot reduce eligible federal income tax below zero. A contribution can still generate a credit, but you may not be able to use that credit immediately.

What it means: This fictional taxpayer has no tax remaining after other credits, so they generally cannot use an additional nonrefundable scholarship credit for that year. Section 25F provides a five-year carryforward for unused credit, subject to its requirements. Discuss future tax liability and carryforward eligibility with your tax advisor before contributing.

Potentially, yes. Once you have made a qualifying contribution and confirmed the credit you expect to use, you can ask your tax advisor or payroll team whether to submit a revised IRS Form W-4. Step 3 of Form W-4 includes a place for other tax credits. A larger Step 3 amount generally tells payroll to withhold less federal income tax, increasing take-home pay. This does not change your total tax credit.

What it means: If payroll reduces federal income tax withholding by $1,700 across 26 remaining paychecks, take-home pay increases by about $65.38 per paycheck. In this illustration, the $1,700 benefit arrives gradually in paychecks instead of as an additional $1,700 refund at filing time. You do not receive the credit twice.

Important: Do not simply enter $1,700 on Form W-4 without reviewing the entire form and your existing entries. Step 3 also accounts for dependent-related and other credits, and the payroll effect depends on filing status, other jobs, pay frequency, timing, and how many paychecks remain. If you adjust withholding after January, the amount needed to spread $1,700 across the remaining paychecks may differ from the Step 3 figure. Use the IRS Tax Withholding Estimator with your tax advisor before changing withholding. Social Security and Medicare withholding are separate and generally unaffected.

Yes. Sunnyside Rising offers one-time and monthly giving. Plan the timing carefully because the contribution year matters.

No. You can support eligible Colorado students even if you live in another state or do not have school-age children. Parents, grandparents, alumni, friends, and other U.S. taxpayers can participate if they meet the federal credit requirements. The scholarship funds serve eligible students in participating states.

You do not need to itemize deductions to claim the Section 25F credit, and the credit does not have a donor income ceiling. You do need a qualifying cash contribution and must satisfy the credit's tax and documentation rules. Student scholarship recipients have separate eligibility requirements.

Sunnyside Rising allows donors to indicate a preferred school community. Contributions cannot be earmarked for a particular student, and all distributions must satisfy scholarship eligibility and qualified-expense requirements. Ask Sunnyside Rising how school preferences are handled if a school's eligible needs are fully funded.

Qualified expenses can include academic tutoring, books and instructional supplies, computers and technology used for education, and certain special-needs services. The precise expenses must meet federal rules and Sunnyside Rising's approved school expense plan. General school operating costs are not automatically qualified expenses.

No. You cannot claim a federal charitable deduction for the same contribution used to claim the Section 25F credit.

Qualifying contributions for the new credit begin January 1st, 2027, subject to the applicable program and SGO requirements. A qualifying contribution made in 2027 is generally reported on your 2027 federal tax return, filed in 2028. You can pre-register now, but pre-registration is not a donation. A charitable gift made in 2026 is not a 2027 Section 25F contribution.