Parental Choice Tax Credit FAQs

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.

When does the enrollment window open?
Soon! The enrollment window will only be open for a few weeks, beginning Dec. 1, and the credits will be awarded on a first-come, first-serve basis until funding cap for the year is reached. To enroll online visit archokc.org/parental-choice.

How much is the cap for the private school tax credit?
For tax year 2024, the OTC cannot authorize more than $150 million of tax credits. For tax year 2025, the OTC cannot authorize more than $200 million of tax credits. For tax year 2026 and subsequent tax years, the OTC cannot authorize more than $250 million of tax credits.

What is the amount of tax credit a person may be eligible for?
The maximum amount of the credit is determined by the total federal Adjusted Gross Income of the student's household during the second preceding tax year. Households with an AGI of $0-$75,000 can receive $7,500; households with an AGI of $75,001-$150,000 can receive $7,000; households with an AGI of $150,001-$225,000 can receive $6,500; households with an AGI of $225,001-$250,000 can receive $6,000 and households with an AGI of $250,001 and up can receive $5,000.

What if a person has more than one child who is eligible for the credit?
In the case of having multiple eligible students in one household, 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. It is important to note, however, that a separate application must be completed and submitted for each eligible student for each tax year.

If someone is the grandparent of the student, is paying the student's private school tuition in 2024, and the student has never lived with them, are they required to provide a copy of their tax return or the tax return of the household where the student lives?
You must provide a copy of the Oklahoma income tax return or the federal income tax return for the second preceding tax year of the household where the student resides.

To learn more about the Parental Choice Tax Credit, or to apply for the credit when the enrollment window opens, visit archokc.org/parental-choice.