Parental Choice Tax Credit

List of 9 items.

• What is the Parental Choice Tax Credit?

  Overview:  
  A refundable income tax credit between $5,000-$7,500 is allowed for eligible Oklahoma taxpayers who pay or expect to pay qualified expenses such as tuition and fees to an eligible private school on behalf of an eligible student that attends or plans to attend an eligible private school during that school year.
  Priority will be given to Applicants claiming credits for eligible students whose parents or legal guardians have a combined federal Adjusted Gross Income (AGI) that does not exceed One Hundred Fifty Thousand Dollars ($150,000) (“priority applicants”). To receive priority consideration, Applicants must submit their applications on or before 60 days after the application opens. Those applications that are approved will receive the credit in two installment payments. Income will be determined using federal AGI from two years prior to the year in which the credit application is being submitted. 
   

  Taxpayer: 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. 
  
  

  Student: An eligible student is a resident of Oklahoma and is eligible to enroll in an Oklahoma public school for grades pre-k through 12th grade. Please note that the child must be 4 years old on or before September 1st of the ensuing school year to qualify. Additionally, the student must be enrolled in and attending or planning to enroll in an eligible private school in Oklahoma. 
  
  

  School: An eligible school must be located in Oklahoma and accredited by the Oklahoma State Board of Education or another accrediting association. The Oklahoma Tax Commission is not an accrediting association. Each eligible school must complete the School Participation Form in order for its students to participate in the program.

• How do I apply for the tax credit?

  Taxpayers must apply for the Parental Choice Tax Credit program online at oktap.ok.gov. The application will become available on February 18, 2025 at 9am CST.
  
  

  Taxpayers will need to provide an Enrollment Verification Number (EVN) for each individual student, per application. Applicants must request this number from their participating private school.
  
  

  Taxpayers must provide the student’s parent or legal guardian’s federal Adjusted Gross Income (AGI) for the second preceding tax year. For example, if you are participating in the program for school year 2025-2026, the second preceding tax year would be 2023. You may be required to provide a copy of your 2023 Oklahoma tax return or federal income tax return federal tax return to verify the student's parent or legal guardian’s income if program administrators are unable to do so electronically.

• What is an Enrollment Verification Number?

  An Enrollment Verification Number (EVN) is a unique identifier for an eligible student who attends or plans to attend a registered private school, which verifies the details of the student’s enrollment, including tuition, fees, and scholarships. This will replace the Enrollment Verification Form (EVF) used in year one of the program.

  
  Taxpayers must request an EVN for each student from the school their student(s) attends or plans to attend. An email containing the EVN will be sent directly to the taxpayer on behalf of the participating school, which will be used during the Parental Choice Tax Credit program application process.

   

   

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

  The credit will be issued in two installment payments. 

   

  The first installment payment is expected to be issued in August 2025; payments will be processed in the order applications are approved. The installment payments will be disbursed by paper check made payable to the taxpayer and will be sent directly to the schools.  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.

  
  Second installment payments are expected to be issued beginning January 2026. 

• What expenses qualify?

  Qualifying expenses are tuition and fees paid to an eligible private school that is accredited by the Oklahoma State Board of Education or another accrediting association.

   

  Eligible fees may 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 Adjusted Gross Income (AGI) of the parent or legal guardian of the student is $75,000 or less, the Taxpayer may qualify for up to $7,500 per year per eligible student. It is important to note that separate Enrollment Verification Form numbers are required for each student. 

• 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 the 2025 tax year, the Oklahoma Tax Commission cannot authorize more than $250 million in tax credits.

• For All Other Questions

  For all other questions and information pertaining to the PCTC, please visit the FAQ section on the Oklahoma Tax Commission website.
  
  https://oklahoma.gov/tax/individuals/parental-choice-tax-credit.html#:~:text=PARENTAL%20CHOICE%20HELP%20CENTER