With the passage of Oklahoma House Bill No. 1934, Oklahoma families will be able to receive tax credits to help cover the cost of private school tuition and fees starting in 2024.
The Oklahoma Parental Choice Tax Credit provides parents of students in private schools a refundable tax credit ranging from a minimum of $5,000 up to a maximum of $7,500 per child. Refundable tax credits are called "refundable" because if you qualify for a refundable credit and the amount of the tax credit is larger than the tax you owe, you will receive a refund for the difference.
The tax credits will be tiered based on the household income for the second year preceding (meaning the 2022 tax year Adjusted Gross Income for the 2024 tax year credit).
Family Adjusted Gross Income (AGI)
Maximum Tax Credit Amount
(per child in private school)
$75,000 and below
$7,500
$75,000.01 - $150,000
$7,000
$150,000.01 - $225,000
$6,500
$225,000.01 - $250,000
$6,000
$250,000.01 and above
$5,000
FAQ
Q: How does it work?
A: The tax credits are tiered based on the household income for the second year preceding
After prioritizing families under the $150,000 threshold, it will be first come, first served. Applying early will be important! *The tax credit will only be accepted through the application process.
Q: When does the application open? A: Applications are now open.
A: It will take effect in the spring semester, starting January 1, 2024. The 2023 Fall semester is not eligible to be claimed. Starting in the Fall semester of 2024, the entire school year will be eligible.
Q: How do I apply? A: Taxpayers must complete and submit an application online through the Oklahoma Tax Commission (OTC). Private school tax credits are exclusively claimed through the submission of an application. The credit CANNOT be claimed on the Oklahoma income tax return.
Q:What will I need to have available at the time of application?
A: 2022 Tax Return - It may not be required, but have it available
- Affidavit (Enrollment verification form) You will be receiving an affidavit from us reflecting your tuition and other required information. The affidavits will be emailed to you by a company called Merit (help@merits.com).
Q: When will I be notified about whether or not I will receive the credit?
A: The notification process will begin as early as mid-December for priority applications (families with adjusted gross income of $150,000 or less) and will continue through mid-February 2024 or until the cap is met.
Q:Will I still need to make scheduled tuition payments while awaiting the tax credit?
A: Yes, please. Lincoln Christian School, like all businesses, relies on tuition to pay staff, continue operations, and provide educational services for students. Families should make all planned tuition payments until the tax credit checks are received by the school and endorsed for payment.
Q:How will we get the tax credit funds?
A: Before funding is dispersed for each semester, Merit will ask the school to confirm that the student(s) is enrolled as was indicated on the tax credit application. After this verification is done, the checks will be sent to the school where the student is enrolled. The checks are expected in March for spring 2024 and September for fall 2024. Half of the total tax credit will be sent for each semester. The parent to whom the tax credit check is issued will be notified to come to the school to endorse the check. After endorsement, the check will be applied to your FACTS tuition account for eligible tuition expenses. Any remaining tax credit funds or overpayment will be refunded back to the parent by LCS in a timely manner.
Q:Will this affect anything regarding Lincoln Christian School's admission process or culture? A: No, this tax credit will have no impact on the admissions process or culture at Lincoln; it's simply an incredible opportunity we would love for Lincoln families to take advantage of.
If you have any further questions, please let us know!
