TITLE 70, OKLAHOMA STATUTES, SECTION 28-101
PARENTAL CHOICE TAX CREDIT RULES
PARENTAL CHOICE TAX CREDIT REPORT FOR 2024
PARENTAL CHOICE TAX CREDIT REPORT FOR SPRING 2025
Get up to $7,500 for Private School Expenses
The Parental Choice Tax Credit program provides a refundable income tax credit of $5,000-$7,500 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 tax year.
Click the button below if you are a school administrator looking for more information.
Click the button below if you are a parent or legal guardian looking for more information.
Is your student's Oklahoma private school participating in the Parental Choice Tax Credit (PCTC) program? Click the link below for the participating accredited school directory.
Step 1 - School Participation
Eligible private schools that wish to participate in the Parental Choice Tax Credit program must register with the Oklahoma Tax Commission on OkTAP.
Step 2 - Enrollment Verification Number
The parent or legal guardian must request an Enrollment Verification Number (EVN) for each student from the school their student(s) attends or plans to attend. The school will provide a unique EVN for each student that will be submitted on the taxpayer’s application.
Step 3 - Apply Online
To apply for the Parental Choice Tax Credit, taxpayers will visit OkTAP to submit their application. Taxpayers will need to provide the unique EVN for each student as part of the application.
Step 4 - Application Status Notification
Once verification has been completed, the taxpayer will be notified about the status of the application. Taxpayers can also check the status of their application on OkTAP.
Step 5 - Checks Will Be Mailed To Schools
Parental Choice Tax Credit checks will be mailed directly to the participating private school. Taxpayers will either pick up the check or sign the check over to the school for payment of tuition and fees.
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. The Oklahoma Tax Commission can only authorize $250 million of tax credits for the 2025-2026 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.
The application will be available for taxpayers to complete on Tuesday, February 18, 2025, at 9 a.m. CST.
Enrollment Verification Number
The parent or legal guardian must request an Enrollment Verification Number (EVN) for each student from an eligible participating private school their student(s) attends or plans to attend. The school will provide a unique EVN for each student that will be submitted on an individual application. The EVN will be provided via email.
Personal Information
1. Name
2. Address
3. Phone number
4. Email
5. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
1. Name
2. Date of birth
3. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Parental Consent Form (if applicable)
If you are not the student’s parent or legal guardian, you will be required to provide a Parental Consent Form. The form is used to obtain verifiable consent from the parent or legal guardian of the eligible student(s) for another taxpayer to participate in the program.
Federal Adjusted Gross Income
Federal Adjusted Gross Income (AGI) of the student’s parent or 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, not tax year 2024.
1. Individuals who have not yet filed a 2023 Oklahoma income tax return will need to file their required 2023 Oklahoma tax return prior to submitting an application OR submit a copy of their 2023 IRS Form 1040.
2. Individuals who did not have an Oklahoma tax filing requirement for 2023 will need to attest to not having a filing requirement.
Case Number/Member ID and Confirmation of Benefits (if applicable)
If you are a recipient of income-based government benefits including Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF) or Sooner Care/SoonerSelect, you will be required to provide your Case Number/Member ID and Confirmation of Benefits for each applicable benefit.
• The priority period is 60 days from the application open date, February 18, 2025, at 9 a.m. through April 19, 2025, at 9 a.m.
• Priority applicants are those with a Federal Adjusted Gross Income (AGI) of $150,000 or less.
• Priority applications will be reviewed and notified of application status within 30 days from the date of the submission.
Once a completed application is submitted, taxpayers may view the status of the application via OkTAP by accessing the ‘Parental Choice Tax Credit Application Status’ link. The following information will be required to view the status of your application:
• Verification that the application was filled out completely.
• Verification of student’s parent/legal guardian’s Federal Adjusted Gross Income (AGI), if applicable.
• Verification of the income-based government benefits including Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), or SoonerCare/SoonerSelect, if applicable.
• Verification of documentation provided on the application, if applicable.
• The priority period is 60 days from the application open date, February 18, 2025, at 9 a.m. through April 19, 2025, at 9 a.m.
• Priority applicants are those with a Federal Adjusted Gross Income (AGI) of $150,000 or less.
• Priority applications will be reviewed and notified of application status within 30 days from the date of the submission.
Yes. In addition to taxpayer and student identification information and an Enrollment Verification Number for each student, active military service members stationed in Oklahoma may need to submit their Form 1040 Federal Tax Return for the tax year 2023.
To be eligible to apply, your student(s) must reside in Oklahoma at the time of the application. If you need additional information, please contact the Oklahoma Tax Commission.
Browse through the list of participating schools to see if your school is participating. Click the link below to download the most updated list of accredited schools.
All accredited private schools must register to participate in the Parental Choice Tax Credit program and be approved to generate Enrollment Verification Numbers for students. Taxpayers are encouraged to point school officials to OkTAP to submit their registration.
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 Numbers are required for each student and a separate application must be submitted for each individual student.
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.
Credit Eligibility Per School Year | |
---|---|
Student Parent/Legal Guardian Federal AGI | Maximum Credit Amount Per Student |
Up to $75,000 | $7,500 |
$75,001 - $150,000 | $7,000 |
$150,001 - $225,000 | $6,500 |
$225,001 - $250,000 | $6,000 |
$250,001 and up | $5,000 |
For school year 2025-2026, the OTC cannot authorize more than $250 million in tax credits.
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.
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.
Yes. Any taxpayer wishing to participate in the program for the 2025-2026 school year must apply when applications open on February 18, 2025, at 9 a.m.
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.
Only a registered accredited private school can provide an EVN to a taxpayer and the unique EVN can only be used once.
If you identify any errors with the information provided in the email, please contact your student’s school directly as they will need to update your Enrollment Verification information and generate a new email. Please note, if you need to make a change to your Enrollment Verification information after you have submitted your Parental Choice Tax Credit application, you will need to withdraw your previous application before your school can adjust your Enrollment Verification information and you will be able to submit a new application. Your position in line for the original application will not be retained.
Enrollment Verification emails are sent to the primary parent or legal guardian. If you did not receive an Enrollment Verification email for your student(s), please contact your student’s school to confirm the email on file for the primary parent is accurate and request that the email be resent.
Taxpayers must be an Oklahoma taxpayer and student must reside in Oklahoma to be eligible to apply.
The Oklahoma Tax Commission (OTC) acknowledges that there may be circumstances where a taxpayer is not the parent or legal guardian of the eligible student(s) but may claim qualified expense(s) for the Parental Choice Tax Credit program.
Parental Choice Tax Credit Consent Form
The OTC has established the Parental Consent Form to:
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.
Yes. However, there is not an application process for the homeschool tax credit, rather it must be claimed on your tax return. The homeschool tax credit is a maximum of $1,000 per eligible student. Receipts for the eligible expenses claimed must be submitted with the form 591-D Parental Choice Tax Credit for Homeschool Expenses.
2024 Form 591-D Parental Choice Tax Credit for Homeschool Expenses
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.
For Spring 2025:
For School Year 2025-2026:
It is the taxpayer’s responsibility to inform the Oklahoma Tax Commission (OTC) if their student(s) is no longer attending a participating accredited private school and would like to withdraw from the Parental Choice Tax Credit program.
To withdraw your student(s) from the program, please email parentalchoice@tax.ok.gov informing us of your request to withdraw in writing.
The OTC is authorized to recapture any credits claimed for unauthorized expenditures or credits claimed for a student who no longer attends a participating accredited private school. Taxpayers are responsible for repayment of any recaptured tax credits to the OTC; the OTC will use all available avenues for collection of recaptured amounts.
Your SoonerCare/ SoonerSelect Medicaid Member ID can be found on your confirmation of benefits letter. An example can be found here.
Your Supplemental Nutrition Assistance Program (SNAP) Case Number can be found on your confirmation of benefits letter. An example can be found here.
Your Temporary Assistance for Needy Families (TANF) Member ID can be found on your confirmation of benefits letter. An example can be found here.
Pursuant to Internal Revenue Code § 6050E, a Form 1099-G must be issued for certain types of government payments, including state or local income tax refunds, credits, or offsets. The OTC is required to issue a Form 1099-G to taxpayers who receive a Parental Choice Tax Credit payment. This does not mean the credit is taxable. Please consult a tax professional if you need more information.
HB3388 exempted the Parental Choice Tax Credit from Oklahoma income tax.
The Oklahoma Tax Commission cannot make a determination on whether a Parental Choice Tax Credit payment is taxable to a taxpayer for federal income tax purposes; that determination is based on each taxpayer’s individual facts and circumstances. Please contact your tax professional if you need more information.