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Oklahoma Society of CPAs announces opening of Parental Choice tax credit application

December 06, 2023

FOR IMMEDIATE RELEASE

Contact:

Stephanie Trougakos, CAE
Chief Operating Officer
Oklahoma Society of CPAs
strougakos@oscpa.com; 405-517-7155

OKLAHOMA CITY (Dec. 6, 2023) — In an effort to assist Oklahoma taxpayers as they navigate new state income tax laws, the Oklahoma Society of Certified Public Accountants (OSCPA) and the state’s CPAs are reminding taxpayers of a new educational tax credit program that goes into effect today.

The application period for the Parental Choice tax credit, which was approved by the Oklahoma legislature earlier this year, is now open.

This initiative introduces a refundable income tax credit designed to expand educational opportunities for Oklahoma taxpayers. Beginning with the tax year 2024, eligible taxpayers gain access to a refundable income tax credit ranging from $5,000 to $7,500. Additionally, there is a tax credit of up to $1,000 for homeschooled students.

This credit is specifically crafted to support qualified expenses, including tuition and fees, for eligible students enrolled in Oklahoma private schools.

Oklahoma CPA Rob Sellers said it is important for taxpayers to understand the procedures needed to apply for the credit.

“One of the biggest misconceptions about this tax credit is that it’s handled on the tax return,” Sellers said. “Only the credit for homeschooled students is handled directly on the tax return. For those attending an accredited private school, the only way to access this credit is to apply directly with the Oklahoma Tax Commission through their online system.”

Sellers reminds taxpayers to note some key elements of the Parental Choice tax credit program:

  • Eligibility criteria: The credit is available for taxpayers who pay, or expect to pay, qualified expenses for an eligible student attending or planning to attend an eligible private school during the tax year.
  • Tax credit limit: The Oklahoma Tax Commission has allocated $150 million for tax credits in 2024. The credits will be distributed on a first-come, first-served basis. Priority will be given to applicants with a federal Adjusted Gross Income (AGI) not exceeding $150,000.
  • Priority consideration deadline: For those applicants below $150,000 AGI to receive priority consideration, applicants must submit their applications on or before Feb. 5, 2024.
  • Installment payments: Approved applications will receive the credit in two installment payments – one in February/March 2024 and one in August 2024.
  • Household definition: The term "Household" includes all persons residing in the same home and providing financial support for the eligible student. Household income will be determined using federal AGI from two years prior to the tax year (2022 for tax year 2024) for which the credit application is being submitted.
  • Eligible taxpayers: Those eligible for the tax credit include biological or adoptive parents, grandparents, aunts, uncles, legal guardians, custodians, or individuals with legal authority to act on behalf of the eligible student.
  • Eligible students and schools: Eligible students must be Oklahoma residents eligible for enrollment in an Oklahoma public school for grades pre-K through 12th grade. Students must also be enrolled or planning to enroll in an eligible private school accredited by the Oklahoma State Board of Education or another accrediting association. The taxpayer will need to obtain an enrollment verification form from their private school prior to starting the application process.

The OSCPA encourages Oklahomans to seek guidance from their Certified Public Accountant regarding the tax credit. For additional information and to access the application, visit the Oklahoma Parental Choice Tax Credit website.

 

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About the Oklahoma Society of CPAs

The Oklahoma Society of CPAs (OSCPA) is a leading nonprofit professional organization dedicated to promoting excellence and integrity in the accounting profession. With a history spanning 105 years, the OSCPA continues to play a vital role in the advancement of the accounting community in Oklahoma. Learn more about the OSCPA at www.oscpa.com.