FREQUENTLY ASKED QUESTIONS

What is the Idaho Parental Choice Tax Credit program?

It’s a newly enacted refundable tax credit program that provides nearly $50 million in state funds to full-time Idaho residents to pay for eligible nonpublic school expenses for Idaho K-12 students and Idaho students up to 21 years of age with a qualifying disability who require ancillary personnel. The program allows parents to apply for a tax credit of up to $5,000 for each eligible student, and up to $7,500 for each eligible student with a qualifying disability.

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Do parents and children need to be residents of Idaho to get the credit?

Yes. To qualify, a parent must be:

• A full-time Idaho resident whose eligible children are also full-time residents.

• Have filed a 2024 Form 40, and an Idaho Individual Income Tax Return, that lists the children as dependents.

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What expenses qualify?

• Tutoring

• Nationally standardized assessments

• Assessments for college admission

• Textbooks

• Curriculum

• Transportation

• K-12 tuition at a non-public school

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When can I apply?

You’ll be able to apply for the 2025 program online from January 15, 2026, through March 15, 2026. Please remember this is a first-come, first-served program, so we recommend you apply as soon as possible. The program requires priority to be given to parents whose modified adjusted gross income doesn’t exceed 300% of the federal poverty level. In addition, applicants are required to keep receipts for qualified expenses. Applicants whose modified adjusted gross income exceeds 300% of the federal poverty level will be placed on a wait list until priority applications have been processed. All applications will be processed in the order in which they’re received.

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Is there a limit to how many children in your family can get the credit?
No. You only need to submit one application for all your eligible children.

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What are qualified expenses, and how do you track them to apply for the credit?

Unlike a voucher, the tax credit is only available for reimbursable expenses. Keep your receipts of expenses paid in 2025 to your current nonpublic school, or expenses incurred for homeschool instruction. In general, these will include costs paid by you for your eligible child or children’s nonpublic academic instruction in the core subjects of English language arts, mathematics, science, and social studies. Examples are tuition or fees paid for attending a nonpublic school, tutoring, textbooks, curricula, and transportation costs. If the nonpublic school that your child is attending isn’t accredited, you’ll be required to document their growth as a student using a portfolio of evidence or learning record.  Please note: Homeschool academic instruction provided by a parent isn’t a qualified expense and would be excluded from eligibility for the credit. Homeschool materials such as textbooks and curricula would be qualified expenses and are eligible for the credit.

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How to avoid penalties for ineligible purchases: If you use the tax credit for something that doesn’t qualify, you’ll have to repay it. Taxpayers who apply must keep receipts to show how the funds were spent. If a mistake occurs, such as accidentally using the funds for an ineligible item, a financial penalty and interest may be applied. If you receive the credit and are found to have willfully provided false information to obtain the credit, that’s considered fraud, and civil and criminal penalties may apply. The penalty for misusing the tax credit is a felony prosecution for tax fraud.

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How do I know if my school is a nonpublic school?
A nonpublic school means a private school, microschool, or learning pod, that provides academic instruction to eligible students. Nonpublic academic instruction may be delivered in person, online, virtually, or through a combination of these methods. A nonpublic school will charge tuition while a public school doesn’t. For example, students who attend public schools such as the Idaho Home Learning Academy or the Idaho Virtual Academy don’t qualify for the credit.

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What if my student takes a class or participates in an activity at a public school?
If you participate in any class or participate in any activity, including sports, you can’t claim the credit for that semester. The law specifically states that eligible students can’t be enrolled full-time or part-time in a public school, public charter school, public virtual charter school, public magnet school, or part-time kindergarten.

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Are there additional reporting requirements for using the tax credit?

Parents must complete a survey administered by the Legislative Services Office, with results summarized in a report and sent to the Legislature. A report will be provided to the Governor and Legislative committees on the total amount of tax credits provided each year, the number of parents applying for the credit, the average amount awarded, the income of households, the geographic area of applicants, and the number of students on the waiting list.

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Is the Idaho Parental Choice Tax Credit program a voucher program?

No. Once the tax credit is awarded through the application process, it goes directly to a parent, guardian, or foster parent of the eligible student(s). The tax credit does not take any funding away from traditional public schools. It is a separate line item in the budget that is in addition to the current K-12 funding formula for public schools.

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How do I track my expenses?

Keep your receipts of expenses paid in 2025 to your current nonpublic school or expenses incurred for homeschool instruction.

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What if my expenses don't qualify?

Anyone applying for the credit will need to produce receipts for qualified expenses. You won’t be eligible for the tax credit if you don’t show qualified expenses. If you receive a tax credit and spend the funds outside the provisions of the law, you must repay those funds. A financial penalty and interest might apply. If you receive the credit and are found to have willfully provided false information to obtain the credit, that’s considered tax fraud and civil and criminal penalties—up to felony charges—might apply.

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Can I use an Idaho Ideal 529 plan to pay for the qualified tuition expenses and still claim the Parental Choice credit?

Yes, you can.​​​​