When You Can Apply: Private Or Homeschool Tax Credit Information

It’s almost time for parents to apply for the private or homeschool tax credit, passed by the legislature this year. Depending on their household income, Oklahoma families can get a refundable tax credit of up to $7,500 to pay for private school tuition.

The conversation around tax credits for private or home-school families was a lengthy battle at the capitol this year and is still a divisive issue between lawmakers. Democrats were widely against passing the tax credit, pointing to a number of potential issues that they say weren’t resolved in the bills.

The emergency rules from the tax commission were adopted this week but lawmakers on both sides say they may have to make some changes to the laws next session. 

“This last legislative session, most of the work that we were doing at the capitol hinged on this private school tax credit,” said House Minority Leader, Cyndi Munson.

“The big picture here is, we’re wanting to make sure that parents that need other options for their kids have a voucher, or not a voucher, a refundable tax credit for them to go spend a school of their choice,” said Governor Stitt.

Between December 1st and February 1st, Oklahoma parents can apply for a tax credit to pay for tuition, or other expenses surrounding private or home-schooling.

The tax credit will depend on household income:

1. Families making $75,000 or less are eligible for a maximum tax credit of $7,500 per student
2. Families making $75,000.01 - $150,000 are eligible for a maximum tax credit of $7,000 per student
3. Families making $150,000.01 - $225,000 are eligible for a maximum tax credit of $6,500 per student
4. Families making $225,000.01 - $250,000 are eligible for a maximum tax credit of $6,000 per student
5. Families making $250,000.01 or more are eligible for a maximum tax credit of $5,000 per student

The credits will be given on a priority basis but will be capped at $150 million for the 2024 tax year.

“The big schools, the cassettes, the Cascia, and the Heritage Halls, they could care less. They've already got their students, they've already got their funding,” said Stitt.

But now, as parents are about to apply for the credit, multiple private schools are substantially raising their tuition rates. Some like Christ the King are hiking their rate by over 50%.

“The concern that we had and that we brought up is that the tuition would be raised to where you know that tax credit would just barely pay for the tuition for those students, or wouldn't pay the full tuition costs,” said Rep. Munson.

Munson explains that the legislature cannot impose rules on tuition, because these are catholic schools. 

“I know that our team and the house and senate are working with the tax commission as they are rolling out those rules,” said Stitt.

Governor Stitt says they're still ironing out the details of the process, but Rep. Munson says they won’t be able to change the laws until the next legislative session in February after the application window closes.

“So until then, yeah, there will be this confusion and this frustration that Oklahomans are dealing with right now,” said Rep. Munson.

For more information, FAQ, and the link to apply for the tax credit, you can visit the Oklahoma Tax Commission Website: https://oklahoma.gov/tax/individuals/parental_choice_tax_credit.html