Tax Credits for Private Education
Beginning January 1, 2027, a new federal tax credit rewards donations that fund K–12 scholarships. Individual taxpayers may claim a nonrefundable credit of up to $1,700 per year for cash contributions to qualified Scholarship Granting Organizations (SGOs), nonprofits that award elementary and secondary school scholarships to students from households earning up to 300% of their area’s median income. Under proposed IRS regulations, spouses filing jointly are treated as separate taxpayers, so a married couple can claim up to $3,400. Because this is a credit rather than a deduction, it reduces your federal income tax dollar for dollar. It can’t reduce your tax below zero, but unused amounts can be carried forward for up to five years.
To qualify, an SGO must be certified by a state that has opted into the program and appear on that state’s list of eligible organizations. New Hampshire has opted in for 2027. As of the IRS’s September 14, 2026 update, Maine and Massachusetts had not. Taxpayers do not necessarily need to live in a participating state to qualify for the credit, provided their contributions are made to an eligible SGO.
Congress created the credit to encourage private donations to K–12 scholarship programs.
Planning for Your Digital Files
If you use Microsoft OneDrive and haven’t set up its Digital Legacy feature, your family may have a hard time accessing vital documents once you’re gone. Many of us now keep important documents, tax records, and decades of family photos in the cloud, but Microsoft is generally unable to share files with anyone other than the account holder.
Digital Legacy lets you name a trusted contact who can view your files and photos if you pass away or can no longer use your account, without giving them access to the rest of your Microsoft account. Their access is read-only, so they can’t change or delete anything. Setup takes just a few minutes under Settings, then Digital legacy, and your contact will need their own Microsoft account. Once they accept, you can generate an access code under Digital legacy that doesn’t expire. Give that code to your executor or keep it with your estate planning documents so it can be found when it’s needed.
Shingles Vaccine and Dementia Risk
A Brown University study published in June of this year suggests the shingles vaccine (Shingrix) may do more than prevent a painful rash. Researchers analyzed over 500,000 adults age 66 and older who were entering skilled nursing facilities. After four years, 18.8% of those who received at least one dose of Shingrix had been diagnosed with dementia, compared with 24.6% of those who were unvaccinated, a 24% lower risk. Researchers estimate this works out to roughly one dementia case potentially prevented for every 17 people vaccinated. While the study shows an association between the vaccine and lower dementia risk, it can’t prove that the vaccine caused the lower dementia rates. Still, it adds to a growing body of research pointing in a similar direction.
Next Week’s Webinar
Is the 4% rule still a useful guide for retirement income? Join us on Tuesday, October 20th at 12:00pm ET as Jonathan C. Harrington, CFP®, MSFP, MST discusses the origins of the rule, how the research behind it has changed over the years, and what to keep in mind before relying on a rule of thumb for your own retirement plan. We will have the webinar recording posted on our site shortly after the event for those who cannot attend live.
Taxes and financial planning are complex, but you don’t have to navigate them alone. A financial advisor can help you stay informed about tax law changes, optimize your savings and investments, and avoid costly mistakes. If you need tailored guidance, our team is here to help. Talk to an advisor or call (603) 589-8010 to integrate tax planning into your comprehensive financial strategy.
Disclaimer:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
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Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
