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Parental Choice Tax Credit
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WHAT IS PARENTAL CHOICE
TAX CREDIT?In May 2023, the governor signed the Oklahoma Parental Choice Tax Credit Act. The act provides refundable Oklahoma state income tax credits of $5,000 to $7,500 per child to parents whose children attend private schools. Effective in January 2024, the parental tax credits will tremendously impact families now in Catholic schools and those considering Catholic schools. With the new funds available to families, the diocese expects greater demand for Catholic education. Visit the Oklahoma Commission Parental Choice Tax Credit Website to learn more.
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how it works
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Parental Choice Tax Credit
for the Catholic Schools in
the Diocese of Tulsa and Eastern Oklahoma
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New for Fall 2025
Beginning with the 2025-2026 school year, the Parental Choice Tax Credit program will be aligned with the school year.
There is NOT an application period for the Spring 2025 semester.Pursuant to the new legislation, HB3388, the Spring 2025 semester is a transition, or “bridge”, to transition the credit from a tax year credit to a school year credit. Only those taxpayers that received a credit for Fall 2024 are eligible to receive a credit for Spring 2025.
Students who attended an accredited private school physically located in Oklahoma and were approved and received the credit for Fall 2024 will automatically be approved for the Spring 2025 semester without having to reapply.The credit amount payable for Spring 2025 will be based upon the Fall 2024 installment disbursement payment amount.Please note, the automatic approval and payment is for the Spring 2025 semester only. Any taxpayer wishing to participate in the program for the 2025-2026 school year must apply when applications open on February 18, 2025. -
!! Mark your calendars !!
Applications for school year 2025-2026 begin on February 18, 2025
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WHO QUALIFIES FOR THE PROGRAM?
Taxpayer Eligibility
- 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.
- A nonresident military service member stationed in Oklahoma qualifies as an eligible Oklahoma taxpayer.
Student Eligibility- 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 Eligibility- An eligible school must be physically 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 register with the Oklahoma Tax Commission on OkTAP and complete the School Participation Form in order for its students to participate in the program.
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Frequently Asked Questions
How do I apply?
Once the online portal opens on February 18, 2025, you will be able to apply for the 2025-2026 school year.To complete your application, you will upload a completed Affidavit of Enrollment from your child's eligible school, and upload a copy of the Oklahoma income tax return or the federal income tax return for the second preceding tax year of the household of which the student is a member. If the household had no tax filing requirement, taxpayer shall submit the Affidavit for No Filing Requirement (OTC Form 591-C) and an Internal Revenue Service (IRS) Verification of Nonfiling Letter, which provides proof from the IRS that there is no record of a filed tax form for the year requested. More details will be provided as we find out more information from OTC.
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. It is important to note, however, that a separate application must be completed and submitted for each eligible student for each tax year.What is the maximum amount of tax credit for which I may be eligible?
Beginning school year 2025-2026, and for all subsequent school years, the credit amount per eligible student is equal to the Maximum Credit Amount Per Student, as shown in the table below, or the anticipated private school tuition and fees for the school year, whichever is less. The anticipated tuition and fees for school year must be reflected in the student’s Enrollment Verification information provided by the eligible school. The Maximum Credit Amount is determined by the total federal Adjusted Gross Income (AGI) of the student's parent/legal guardian during 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.
How much can the Oklahoma Tax Commission (OTC) authorize per year for the tax credit?
For school year 2025-2026, the OTC cannot authorize more than $250 million in tax credits.How can I find out the status of my application?
Once a completed application is submitted, taxpayers may log on to their OkTAP account to view the status of the application.If approved, how will I receive the tax credit?
For tax credits awarded to students enrolled in an eligible private school, 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 school 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.When and how will payments be made?
The credit must 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. Checks will begin processing on a weekly basis and will be sent directly to the schools.
Second installment payments are expected to be issued beginning January 2026.
Is there an appeal process if my application is denied?
Yes. If your application is denied, you will receive a letter with more information as to the reason the application was denied and instructions on how to request a hearing before the Oklahoma Tax Commission. The hearing will be in-person and will give you the opportunity to appear and provide further documentation and/or information to show why you believe your application should be approved. -
More questions? Please contact us!
Catholic School Office
918.307.4954
[email protected]