Parental Choice Tax Credit

List of 8 items.

• How do I apply for the tax credit?

  On Friday, December 1st, the portal will open for applications to be filed for the tax credit. The school has filed all of the necessary paperwork. The next step will be for Merit International, Inc. (the company OTC has hired to handle the application process) to send each family their Enrollment Verification Form(s). All of our families will be receiving this form whether or not you intend to file for the tax credit or not.

• I want to attend WCA for the 2024-2025 School Year. What do I need to do?

  Applications for the 2024-2025 school year are open but to receive credit from the state for the fall 2024 semester, your student(s) must be enrolled at WCA by December 1, 2023. Otherwise you'll need to pay full tuition for the fall of 2024 and apply for the tax credit on December 1, 2024 to be applied to spring 2025 and fall 2025 semesters. 
  
  The Oklahoma Tax Commission chose to run the program on a calendar year rather than a school year. We know this is confusing so contact us with any questions!
  
  Families will go through our regular admissions process. Once accepted and enrolled, your information will be submitted to OTC / Merit International, Inc. for the tax credit.

• We are a current WCA family. What do I need to do?

  On Friday, December 1st, the portal will open for applications to be filed for the tax credit. The school has filed all of the necessary paperwork. The next step will be for Merit International, Inc. (the company OTC has hired to handle the application process) to send each family their Enrollment Verification Form(s). All of our families will be receiving this form whether or not you intend to file for the tax credit or not.

• 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.

• 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.