As many of you know the Parental Choice Tax Credit portal opens tomorrow, December 6th at 2:00 pm. We would like to point out some key takeaways from this program.
- Tax Credit Details: Starting in 2024, eligible Oklahoma taxpayers can receive a refundable income tax credit ranging from $5,000 to $7,500.
- Qualified Expenses: The credit is for those who pay or expect to pay qualified expenses, such as tuition and fees, for an eligible student attending or planning to attend an eligible private school during the tax year.
- Cap on Tax Credits: The Oklahoma Tax Commission has a limit of $150 million for tax credits in 2024.
- Priority for Certain Households: Priority in processing applications will be given to those claiming credits for eligible students in households with a federal Adjusted Gross Income (AGI) below $150,000 ("priority applicants").
- Application Deadline: To receive priority consideration, applicants must submit their applications on or before February 5, 2024. In most cases, you will be notified of approval within 14 days.
- Payment in Installments: Approved applications will receive the credit in two installment payments. Notably, the tax credit checks will be sent directly to your child’s school. The first installment payments for non-priority applicants will be made after February 2024 on a first come first serve basis until all available funds are allocated.
- Definition of "Household": For credit purposes, "Household" includes all individuals residing in the same home and providing financial support for the eligible student.
- Income Determination: Household income for the credit will be determined using federal AGI from two years prior to the tax year of the credit application.
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 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.
Where and how to apply?
To claim the Parental Choice Tax Credit, the Taxpayer must apply online at www.parentalchoice.ok.gov
- Taxpayers may submit a single application for multiple eligible students.
- Taxpayers will need to upload a completed Enrollment Verification Form for each student as part of the application. Applicants must request this document from their participating school.
- Taxpayers must provide the student Household Federal Adjusted Gross Income (AGI) for the second preceding tax year. For example, if you are applying for the Parental Choice Tax Credit for tax year 2024, you will provide the federal AGI from tax year 2022. You may be required to provide a copy of the 2022 Oklahoma income tax return or federal income tax return of the student’s current Household if program administrators are unable to verify electronically.
Notice: This information is based on available data, and for further questions or clarification, please refer to the official website or contact the relevant authorities.