Parents should act now to be ready for the Parental Choice Tax Credit application

The Idaho Parental Choice Tax Credit is a new refundable tax credit program that 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 special needs student, for qualified education expenses.

The Idaho Tax Commission has been tasked with administering the program and is responsible for registration, verifying eligibility, and prioritizing applicants based on the receipt of a 2024 Form 40 Idaho Individual Income Tax Return. In order to apply for the program and receive the credit, parents must create an individual Taxpayer Access Point (TAP) account. The Tax Commission recommends setting up this account by December 1, 2025, as it may take 10–14 days if identity verification must be done through the postal mail.

However, if the Tax Commission has already processed a 2024 return in which tax was owed, parents may qualify for same-day online verification. To begin, visit this page to request a mailed verification code, register for a TAP account, or verify 2024 tax return data for same-day TAP account access. TAP account registration is free, and all personal information is kept secure.

What if I am not required to file a tax return?

All parents applying for the 2025 tax credit or the 2026 advance payment must file a 2024 Form 40 and register in advance for a TAP account in order to participate. The Tax Commission provides guidance for individuals who are not required to file a tax return but must do so for the purpose of applying for the tax credit.

What if I filed my 2024 tax return in another state?

Applicants must be current full-time Idaho residents and must have filed a 2024 Form 40 Individual Income Tax Return to apply for the tax credit program.

Can I use my business TAP account to apply?

No. A separate individual TAP account must be created using your Social Security number or ITIN. Business TAP accounts created under an employer identification number (EIN) cannot be used for the parental tax credit program.

Who can claim the credit?

Each eligible student may only have the credit claimed by one parent per year. Applicants must be full-time Idaho residents as determined by filing an Idaho Form 40 Tax Return with dependents with qualifying education expenses. Married parents only need to create one individual TAP account for the household.

How will applications be processed?

Applications will be accepted from January 15 to March 15, 2026. The $50 million in program funds allocated for 2025 will be prioritized for families with income at or below 300% of the federal poverty line. If funds remain, priority will be based on date of application. In future years, families who received the credit the previous year will be prioritized first, followed by applicants with income at or below 300% of the federal poverty level.

Parents with additional program or eligibility questions are invited to attend upcoming town hall events in Moscow (December 3), Nampa (December 4), or Meridian (January 7), where legislators and education experts will be on hand with Mountain States Policy Center staff. Families can also submit questions, find additional information, and RSVP online at https://www.idahokidswin.com/.