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: We are nearing the distribution of tax credit funds for approved, priority families (those making up to $150,000). While we do not have a specific date, we anticipate receiving the checks from the Oklahoma Tax Commission in the next few weeks. You will receive a notification from us once the checks are received with further instructions.
If your application is currently under manual review, we appreciate your patience. The review process is ongoing. If your 2022 adjusted gross income exceeds $150,000, expect to receive notification in mid to late February.
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 do I know if I've been approved?
A: To check if you have been approved for the Parental Tax Credit, look for an email from Merit with the subject line: "[Name], Oklahoma Parental Choice Tax Credit Program has sent you a merit." This applies to priority families. Non-priority families can expect answers in mid to late February.
You must ACCEPT the reward in the system for each qualifying student to receive the tax credit.
Q:How will we get the tax credit funds?
A: The Oklahoma Tax Commission (OTC) will send a check to the school in your name. We will notify you when the check is ready for pickup and provide instructions on funding the remainder of your tuition payments for the 2023-2024 school year.
Q: What if I haven't heard back from the Tax Commission? A: If you haven't heard from the OTC yet, non-priority families (making over $150,000) can expect answers in mid to late February. Priority families who haven't received communication should contact the OTC immediately at help@parentalchoice.ok.gov and check all junk folders for emails from help@merits.com.
As a reminder, LCS does not have access to the state system or information about your award or payments. For questions regarding tax credits, please contact the Tax Commission at 918-554-5440 or help@parentalchoice.ok.gov.
If you have any further questions, please let us know!
