Oklahoma Parental Choice Tax Credit

Beginning in the 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.

Yes! Owasso Preparatory Academy is accredited by the State Board of Education. You can access that information here.

“Qualified expense” means tuition and fees at a private school accredited by the State Board of Education or another accrediting association, which includes the Oklahoma Private School Accrediting Commission (OPSAC) and any OPSAC-recognized accrediting associations. Fees include:

• Enrollment Fees
• Registration Fees
• Application Fees
• Textbook Fees
• Technology Fees
• Activity Fees
• Testing & Assessment Fees
• Fees paid for school uniforms, if paid directly to the school.

The credit amount will be based on the anticipated private school tuition and fees you expect to pay for the tax year, as indicated in the private school’s Affidavit of Enrollment. Each payment (of two) will not exceed half of the allowable credit for the applicable year.

The credit will be paid out in two installments, each of which shall be half of the tax credit for which the family qualifies. The dates of these payment installments have not yet been released. OPA will keep families informed as information is published.

For example, each payment will not exceed the amount below for 2024:

For the tax year 2024, the application period for students with household income of less than $150,000, will be December 8, 2023, through January 22, 2024.

For tax year 2025 and subsequent tax years, the application period for students with household income of less than $150,000, will be December 1st (preceding the applicable tax year) through January 15th.

Applications will be processed on a first-come-first-serve basis. Please note that submitting an application during this period does not guarantee eligibility for the credit. Only properly submitted applications approved by the OTC will be eligible for the credit until the cap is met.

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 that a separate application must be completed and submitted for each eligible student for each tax year.

To claim the private school tax credit, you will apply online. You will need to upload with the application a completed Affidavit of Enrollment and 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. 

OPA will provide the Affidavit of Enrollment to the parents of all students who have completed the admissions and registration process for the Spring and/or Fall semesters of 2024.

If you are applying for the private school tax credit for tax year 2024, you must provide a copy of the 2022 Oklahoma income tax return or federal income tax return of the student’s current household.

Only one application is required for each tax year. For tax year 2024, the application process opens on December 8, 2023. 

Each year thereafter, you can apply for the credit beginning on the first day of December preceding the applicable tax year. For example, the application process opens December 1, 2024, for the tax year 2025. The deadline to apply is on or before December 31 of the tax year you incur private school tuition and fees, or until the cap has been met, whichever comes first.

No, the amount of your credit will be limited to half the amount of your 2024 allowable credit, not to exceed the amount of tuition and fees for the one semester.

If your federal AGI includes any private tax credit payments, the amount included in the federal AGI will also be included in your Oklahoma taxable income.

Form 1099-G is for certain types of government payments, such as unemployment compensation, state or local income tax refunds, credits or offsets. The OTC will issue Form 1099-G to taxpayers who receive a Parental Choice Tax Credit payment.

• For the tax year 2024, the OTC cannot authorize more than $150 million tax credits.
• For the tax year 2025, the OTC cannot authorize more than $200 million tax credits.
• For the tax year 2026, the OTC cannot authorize more than $250 million tax credits.

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.

No, OPA will remain committed to our mission–to provide a hybrid model, Christian education, partnering with parents to prepare students for higher education through exceptional academics, quality extra-curricular activities, and purposeful development of Christ-like character.

Applications for the 2024-2025 school year open December 1, 2023. Because there is a cap on total tax credit funds, and funds will be awarded on a first-come, first-serve basis, we encourage families considering OPA to apply at their earliest opportunity. Families will go through our regular admissions process. Once accepted and enrolled, families will be provided with information on how to apply for an Oklahoma Tax Credit.