More than 4,650 applications received for Parental Choice Tax Credit program

More than 4,650 applications received for Parental Choice Tax Credit program

BOISE, Idaho - Jan. 21, 2026 - As of January 20, the Tax Commission has received more than 4,650 applications from parents requesting either a parental choice tax credit or an advance payment for more than 7,300 eligible students. The applications include more than 6,150 requests for the parental choice tax credit and more than 1,150 for the advance payment.

The application period for the program will remain open through March 15 unless a law change or court order halts the program. As with any tax program, the Tax Commission has the authority to audit those who receive the parental choice tax credit and the advance payment.

For more information about the Idaho Parental Choice Tax Credit program, visit the state's official website at myschoolchoice.idaho.gov.

Advance payment
The advance payment is a one-time payment that, if funded, eligible parents can use to pay for expected, qualifying expenses. To be considered for the 2026 advance payment, a parent's 2024 modified adjusted gross income can't exceed 300% of the 2024 federal poverty level.

Parents who are awarded the advance payment must save receipts for actual, qualifying expenses they paid in 2026. They'll be required to provide them to the Tax Commission at the end of 2026. Any funds from the advance payment that they didn't use for qualifying expenses must be repaid to the Tax Commission.

By April 15, the Tax Commission will notify parents if they'll receive the advance payment. The payment will then be issued by August 15.

The advance payment will be offered every year of the program, but parents can only take advantage of it once for each eligible student.

Parental choice tax credit
Eligible parents can apply for the parental choice tax credit for qualifying expenses paid in 2025, but families whose 2024 modified adjusted gross income is 300% or less of the 2024 federal poverty level receive priority.

The Tax Commission will notify parents by April 15 if they're approved for the parental choice tax credit. Parents who are awarded the credit will claim the approved amount on their 2025 Idaho Form 40, Individual Income Tax Return.

Since April 15 is the due date for 2025 income taxes, parents have two options. They can file their return before they find out if they've received the parental choice tax credit. If they're awarded the tax credit, they can then file an amended return with the updated information. If they don't file until after they find out if they've received the tax credit, they should make sure they have a valid extension to file to avoid a penalty if filing after April 15.