Oklahoma’s Private School Tax Credits Unveiled What parents need to know about eligibility and limitations BY JENNIFER PALMER , OKLAHOMA WATCH
What are the private school tax credits? The Parental Choice Tax Credit offers Oklahoma families a refundable tax credit of $5,000 to $7,500 for private school tuition and fees. If you will pay, or expect to pay, for a child’s private school this year, you can apply for the credit. Though it’s called a refundable tax credit, it functions like a voucher because families can advance the funds from the Oklahoma Tax Commission in a process that’s separate from income tax filing. The program was a major initiative for the Legislature and Gov. Kevin Stitt in 2023. Proponents say the program is needed to help low-income families afford private schools if it’s the right fit for their children. “I think it’s going to be a tremendous blessing for our families,” said Barbara Ohsfeldt, founder and principal of Community Christian School in Norman. While the program could make private schools feasible for a few new families, critics say it will mostly cover the costs parents could already afford on their own. “It was always sold as: for a parent who wants to send their kids to private school but for the cost, we’re going to provide this option,” said David Blatt, director of research and strategic impact at Oklahoma Appleseed Center for Law & Justice, a nonprofit organization that advocates for public education. The application cycle, which opens in December of each year for the next calendar year, favors parents whose children already attend private school, not those the program was intended to serve, he said. Folks on both sides of the issue say they will try to work with the Legislature to align the program with the school year. The state’s new private school tax credit program is underway amidst much debate. With differing opinions on accessibility, funding limits and implications for local schools, the program has become a focal point of discussion among parents, educators and policymakers. We asked Jennifer Palmer, education reporter for Oklahoma Watch, for her insight about how the credits work, who is eligible and how public schools will be impacted.
Get up-to- date news on the launch of the tax credit program here.
Who is eligible, and will every family receive the credit? Any student in Pre-K through 12th grade is eligible. Previous public school enrollment isn’t required. Proponents say the tax credit program will be able to serve about 23,000 in its first year, but there are already 33,000 students attending private schools in Oklahoma, so the funds are likely to run out. Families must reapply each year, and receiving the credit one year doesn’t guarantee they’ll receive it the following year. Families of all income levels can qualify for a credit, but those who earn less than $150,000 per year (based on adjusted gross income) will be prioritized if they apply by Feb. 1. The application deadline is Dec. 31 of each year, or when the cap is met. Credit amounts are $7,500 for families with an adjusted gross income of less than $75,000; $7,000 for income between $75,001 and $150,000; $6,500 for income between $150,001 and $225,000; $6,000 for income between $225,001 and $250,000; $5,000 for income of $250,001 and above. The credits can’t be split (say between divorced parents) and only one taxpayer can claim a child, though that person could be a grandparent or other relative if they pay for tuition.
30 METROFAMILYMAGAZINE.COM / JAN-FEB 2024
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