Empowering Oklahoma Families: Navigating the Parental Choice Tax Credit for Education in 2025

As we start a new year, many families are starting to think about their children’s school year starting in August. School enrollment is in full force in communities across the state. Many families are researching or touring schools they are interested in having their children attend. 

The introduction of the Parental Choice Tax Credit in Oklahoma last year marks a pivotal moment in the state's educational landscape. This initiative, designed to provide financial support for private school and homeschooling expenses, is a bold step toward ensuring all children, regardless of their socio-economic background, have access to education that best meets their needs.

Empowering Families with Choice

At its core, the Parental Choice Tax Credit (PCTC) is about empowering all Oklahoma families with school-aged children. By offering a refundable income tax credit ranging from $5,000 to $7,500 for private school expenses, and up to $1,000 for homeschooling expenses, the program lessens the financial burden that often accompanies these educational choices. This financial support is crucial for many families who desire a different educational environment for their children but are constrained by cost.

The Parental Choice Tax Credit is Available to All Oklahomans

PCTC has the potential to address educational and socio-economic inequities. Families making $150,000 or less have priority to the available tax credits (limited to $250 million starting with the 2025-26 school year). However, all families are eligible to apply regardless of income level, based on their Adjusted Gross Income (AGI) from “the second preceding tax year” – for 2025, that is line 11 on Form 1040 of a family’s 2023 tax return.

Families at lower income levels can receive a tax credit payment equal to the cost of tuition and fees of a private school, not to exceed $7,500 per school year. The tax credit payments graduate down based on income to the level of families making over $250,000 per year receiving $5,000 per child for their educational costs. The tax credit payments are made until the limit of tax credits available is reached or July 15 of each year – whichever comes first.  By making these options accessible to all Oklahoma families, the tax credit helps level the playing field, giving more students the opportunity to choose.

The Application Process Starts Soon

Parents can apply for the Parental Choice Tax Credit for the 2025-26 school year starting at 9 a.m. on February 18. Why such a precise time and date? Because applications are taken on a first-come, first-served basis. However, for the first 60 days, those families with an AGI of $150,000 or less on their 2023 tax return will get priority to the available tax credits before the rest of the applicants. Therefore, if a family under $150,000 in income applies on the 59th day of the application process, they will be served before those families with incomes greater than $150,000. Families outside of the priority group will be served in the order that they applied, so applying on the first day that applications are open can be very important.

What to Know Before You Apply

First, your child must have applied, and been accepted, to a private school in Oklahoma. Once accepted, the school will provide the family with an Enrollment Verification Form (EVF) for each of their enrolled students.  When the family goes online to apply for the Tax Credit, they will need to upload the EVF with each student’s application.  When applying, please remember to have your, and your student’s, social security numbers and the AGI amount from your 2023 tax return handy.

Supporting Homeschooling Families

The inclusion of homeschooling expenses in the tax credit program is a unique move that acknowledges the growing trend of homeschooling. With up to $1,000 available for qualified homeschooling expenses, parents who choose to educate their children at home can access resources that enhance their children’s educational experience. This support is particularly important as more families turn to homeschooling for its flexibility and personalized approach. Unlike the PCTC, homeschool expenses must be claimed on a filer’s tax return and receipts must be attached to the return to take the tax credit.

Conclusion

The Parental Choice Tax Credit in Oklahoma prioritizes the needs of students and families. By providing financial support for private school and homeschooling expenses, the program expands educational opportunities and promotes equity for all Oklahoma students to receive the education that works best for their learning and family needs. For more information, visit www.parentalchoice.ok.gov.