THE IDAHO PARENTAL CHOICE TAX CREDIT – HOW AND WHEN TO APPLY
Idaho Parental Choice Tax Credit allows for a refundable tax credit up to $5,000 per eligible student and $7,500 for eligible students with disabilities requiring ancillary personnel. All the below information was provided to us by www.afcgrowthfund.org.
Download a copy of the below information here.
ELIGIBILITY REQUIREMENTS:
- Full-time resident of Idaho ages 5 to 18
- Residents 5 to 21 years of age if the student has disabilities requiring ancillary personnel.
QUALIFIED EXPENSES:
- Tuition or fees for attending a nonpublic school, kindergarten through grade 12.
- Tutoring
- Costs for nationally standardized assessments, assessments used to determine college admission, advance placement examinations, industry-recognized certification exams, and preparatory courses for nationally standardized assessments.
- Textbooks and curricula used for kindergarten through grade 12 academic instruction.
- Transportation costs to and from a facility incurred for the purposes of receiving kindergarten through grade.
12 academic instruction.
HOW IT WORKS:
- The Idaho State Tax Commission will issue forms for the purpose of applying for and claiming the credit what materials to keep in your files, certification requirements, and will discuss penalties for false and fraudulent filings.
- For parents interested in claiming the refundable tax credit in the 2025 tax year, the tax filing application period will open on January 15, 2026, and shall remain open until March 16th, 2026.
- The Tax Commission will notify parents whether they will receive the refundable tax credit by April 15th, 2026.
- There is a cap of $50 million dollars for programs that are generally distributed on a first come, first served basis. If funds are left over after the application period is closed, then the Tax Commission must re-open the application period to receive new applications. These new applications will be received until August 15th, 2026, or until the $50 million dollar cap is reached.
- If the states receive more applications than will exceed the cap, priority will go to parents whose modified adjusted gross income (AGI) does not exceed 300% of poverty level or approximately $93,500 for a family of four in 2026.
- Parents making 300% below poverty level are able to apply for advance payment of the credit beginning in the 2026 tax year, allowing those families that may not have the initial funds to enroll kids for non-public education to do so.
- The Idaho Tax Commission will develop forms to allow for a one-time advance pay of the credit for each available student. The qualified parent would receive a one-time payment no later than 60 days after notification of the credit award, and not later than August 30th.
IDAHO PARENTAL CHOICE TAX CREDIT PROGRAM – Q&A FOR PARENTS
Download a copy of the Q&A for Parents here.
Q: What is the Idaho Parental Choice Tax Credit?
A: The Idaho Parental Choice Tax Credit is a refundable tax credit that provides families with up to $5,000 per eligible student to help cover private school tuition and other qualified educational expenses. Families with students who have disabilities requiring additional support may receive up to $7,500 per student.
Q: Who qualifies for this program?
A: To be eligible, students must be:
- Full-time residents of Idaho.
- Between the ages of 5 to 18 (or 5 to 21 for students with disabilities requiring additional services).
- Enrolled in a nonpublic school, receiving tutoring, or using other approved educational services.
APPLICATION & DEADLINES
Q: How do I apply for the tax credit?
A: The Idaho State Tax Commission will provide official application forms. Parents must complete the form and submit any required documentation to verify eligibility.
Q: Who is administrating the tax credit program?
A: The Idaho Tax Commission will administer the program.
Q: When does the application period open?
A: The first application period for the 2025 tax year opens on January 15, 2026, and will close on March 16, 2026 (or earlier if funds are exhausted).
Q: How will I know if I receive the tax credit?
A: The Idaho Tax Commission will notify parents within 30 days after the application period closes (by April 15, 2026, for the 2025 tax year). Funding & Availability
Q: How much funding is available?
A: The program has a $50 million cap, distributed on a first-come, first-served basis. If funds remain after the initial application period, a second application period will open until August 15, 2026, or until funds are fully allocated.
Q: What if my family makes less than 300% of the federal poverty level?
A: Families with incomes below 300% of the poverty level (approximately $93,500 for a family of four in 2026) will receive priority for the 2026 tax year and beyond.
Advance Payment Option
Q: What if I cannot afford private school tuition up front?
A: Families earning below 300% of the poverty level may apply for advance payment of the credit starting in 2026. This helps families afford tuition before the school year begins.
Q: When will I receive the advance payment?
A: If approved, the Idaho Tax Commission will issue the payment within 60 days of notification, but no later than August 30th of that year.
QUALIFIED EXPENSES
Q: What educational expenses are covered by the tax credit?
A: The credit can be used for:
- Private school tuition & fees (K-12)
- Tutoring & supplemental education services
- College admission tests & prep courses
- Advanced Placement (AP) & certification exams
- Textbooks & curriculum for academic instruction
- Transportation costs for travel to/from an educational facility
Q: How do I prove that my expenses qualify?
A: The Idaho State Tax Commission will provide guidelines on what records to keep and how to verify expenses. Parents should save receipts and other documentation in case of an audit.
FINANCIAL & TAX-RELATED QUESTIONS
Q: If I owe money on my taxes, can I still benefit from this program?
A: Yes! The Parental Choice Tax Credit is refundable, meaning even if you owe little to no state income tax, you can still receive the full benefit of the credit. If your tax liability is less than the amount of the credit, you will receive the remaining balance as a refund.
Q: What if I don’t file state income taxes?
A: Families must file Idaho state income taxes to claim the credit. If you don’t currently file, you may need to do so to receive the benefit. The Idaho State Tax Commission will provide guidance on how to apply.
Q: Does this credit impact other tax benefits I receive?
A: The tax credit is separate from other education-related deductions or credits. However, parents should consult a tax professional to ensure they maximize all eligible benefits.
ACCESS FOR HOMESCHOOL & RURAL FAMILIES
Q: I am a new homeschool mom. How can I benefit from this program?
A: Homeschooling families can use the credit for:
- Curriculum & textbooks
- Tutoring services
- Standardized test fees (ACT, SAT, AP exams, etc.)
- Educational supplies necessary for instruction
- Supplemental online courses
If you are new to homeschooling, this credit can help offset the costs of setting up your child’s education program. Youcannot use it to pay yourself as a homeschool parent.
Q: How can rural parents benefit from this program?
A: Rural families often have fewer schooling options, but this tax credit allows them to:
- Use online learning programs or virtual schools that fit their child’s needs.
- Cover travel expenses if they choose a private school outside their immediate area.
- Fund private tutoring if local options are limited.
Q: I live in a district with no private schools nearby—does this program still help me?
A: Yes! The tax credit applies to more than just tuition. If private school isn’t accessible, families can use the credit for approved homeschooling materials, tutoring, and other eligible education expenses.
ENROLLMENT & LOGISTICS
Q: Can my child switch to a private school mid-year and still qualify?
A: Yes! As long as your child is enrolled in an eligible private school at the time of application and you can verify expenses, you may qualify for a pro-rated tax credit.
Q: My child has an IEP and currently receives services through the public school. Can I still claim this tax credit?
A: If your child is enrolled full-time in a private school or homeschool program and you are covering educational expenses, you may still qualify. However, parents should verify how switching to private education may impact access to public school services.
Q: Can I use this tax credit for religious or faith-based schools?
A: Yes! The tax credit applies to all accredited private schools, including religious institutions. Parents can choose the best educational setting that aligns with their values and their child’s needs.
Q: What if I already received a private school scholarship? Can I still use this tax credit?
A: Yes, but the tax credit applies only to out-of-pocket expenses that were not covered by other scholarships or financial aid. Parents must document eligible expenses not offset by other funding sources.
Q: My child has special needs. How does this program specifically help families like mine?
A: Families with children who have disabilities can receive an increased tax credit of up to $7,500 per student. This can help cover tuition, therapy-based learning programs, specialized tutors, and other approved educational resources tailored to your child’s needs.
Q: Is there a limit to how many children in my family can qualify?
A: No! Each eligible child in your household can receive the tax credit, meaning larger families can benefit significantly.
Q: What happens if I apply late and all the funds are allocated?
A: The program has a $50 million cap, so it is first-come, first-served. If the funding runs out, you may need to wait until the next application cycle. Families are encouraged to apply as soon as applications open.
Q: How can I stay informed about updates to this program?
A: Parents should regularly check the Idaho State Tax Commission website for official guidance. Additionally, organizations like the American Federation for Children Growth Fund will provide updates and assistance throughout the application process.