Parental Choice Tax Credit

Oklahoma Parental Choice Tax Credit

The Parental Choice Tax Credit affords families the opportunity to select the most suitable educational institution for their children.
Families in Oklahoma can receive tax credits to help pay for private school tuition and fees thanks to the passing of Oklahoma HB 1934. Parents can get a refundable tax credit of at least $5,000 and up to $7,500 per child to cover the cost of tuition and fees at an accredited private school.

Tax credits are determined based on household income from the second year prior to the tax credit (which means the 2022 Adjusted Gross Income for the 2024 tax credit). Families with incomes below $150,000 will have first priority for tax credits. The tax credit will be given in two parts, with each installment being half of the tax credit the family is eligible for. 

The amount of the tax credit is dependent on a family’s Adjusted Gross Income. The amount available per child per year is as follows:
  • $7500 for family incomes below $75,000
  • $7000 for family incomes over $75,001 but not exceeding $150,000
  • $6500 for family incomes over $150,001 but not exceeding $225,000
  • $6000 for for family incomes between $225,001 – $250,000
  • $5000 for family incomes over $250,001

Tax Credit FAQs

List of 7 items.

  • What is the Parental Choice Tax Credit?

    Beginning in tax year 2024, a refundable income tax credit is allowed for certain Oklahoma taxpayers who pay or expect to pay, tuition and fees to an eligible private school on behalf of an eligible student. An eligible taxpayer is someone who is subject to the tax laws of the state of Oklahoma, and who is a biological or adoptive parent, grandparent, aunt, uncle, legal guardian, custodian, or other person with legal authority to act on behalf of the eligible student.
  • How do I apply for the tax credit?

    Click this link to begin the application process:

  • If approved, how will I receive the tax credit?

    The Oklahoma Tax Commission (OTC) will send the tax credit payments directly to the school in two installments. Each installment payment will not exceed half of the allowable credit for the applicable tax year. While the payments are sent to the school, the checks will be made payable to the Taxpayer submitting the application. Taxpayers will be required to personally appear at the school to either sign the check over to the school or collect the check from the school if tuition and fees have already been paid.
  • What expenses qualify?

    "Qualified expense" means tuition and fees at a private school accredited by the State Board of Education or another accrediting association, which includes the Oklahoma Private School Accrediting Commission (OPSAC) and any OPSAC-recognized accrediting associations. Fees include enrollment, registration, or application fees; textbook fees; technology fees; activity fees; testing and assessment fees; and fees paid for school uniforms if paid directly to the school.
  • What if I have more than one child who is eligible for the credit?

    In the case of having multiple eligible students, the taxpayer may receive the tax credit for each eligible student. For example, if the federal AGI of the household where the students reside is less than $75,000, the taxpayer may qualify for up to $7,500 per year per eligible student. All eligible students in the household can be entered on a single application.
  • What is Family Adjusted Gross Income (AGI)?

    Family Adjusted Gross Income (Family AGI) is the combined total income of all members in a household, after subtracting certain deductions. For instance, if a family of four has a total income of $60,000 and they deduct $10,000 in allowable expenses, their Family AGI is $50,000. Common deductions include contributions to retirement accounts like a 401(k) or traditional IRA, alimony payments, and student loan interest.
  • What is the cap for the private school tax credit?

    • For tax year 2024, the OTC cannot authorize more than $150 million in tax credits.
    • For tax year 2025, the OTC cannot authorize more than $200 million in tax credits.
    • For tax year 2026 and subsequent tax years, the OTC cannot authorize more than $250 million in tax credits.
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