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Idaho Parental Choice Tax Credit — A Guide for Homeschool Families

The Idaho Parental Choice Tax Credit is a refundable state income tax credit for families who pay for their children's education outside the public schools. It was created by House Bill 93 in 2025 (Idaho Code 63-3029N), changed by House Bill 934 in 2026, and is run by the Idaho State Tax Commission through the My School Choice website and the Tax Commission's TAP portal. It pays up to $5,000 per child, or up to $7,500 for a child with a qualifying disability, toward qualifying costs paid during the tax year, from a statewide pool capped at $50 million a year. Homeschool families can use it: the Tax Commission's eligibility checklist lists homeschool alongside private schools, microschools and learning pods, and the law says homeschooling doesn't count as public school enrollment. What it pays for is narrow, though. A curriculum covering English language arts, math, science and social studies, textbooks, tutoring in those core subjects and certain tests qualify. Extracurricular activities and a parent's own teaching do not. You must apply and be approved before you can claim it. The next window, for the 2026 tax year, runs January 15 to March 15, 2027. Lower-income families can instead ask for a one-time advance payment up front. The Idaho Supreme Court upheld the program on February 5, 2026.

Overseen by	The Idaho Legislature, under Idaho Code 63-3029N (House Bill 93 of 2025, amended by House Bill 934 of 2026). The Idaho Supreme Court upheld the law on February 5, 2026.
Administered by	The Idaho State Tax Commission. Families apply through their Taxpayer Access Point (TAP) account; program details are on myschoolchoice.idaho.gov. The money goes to the parent, either as a refundable credit on the Idaho Form 40 or as a one-time advance payment to the parent's bank account.
Amount per student, 2026 tax year	Up to $5,000 per eligible child, or up to $7,500 for a child with a disability who requires ancillary personnel, for qualifying costs paid in calendar year 2026. Statewide credits are capped at $50 million per tax year. The credit and the advance payment are not Idaho taxable income.
Who is eligible	Full-year Idaho resident parents (including legal guardians and licensed foster parents) of children age 5 to 18 at any time during the tax year (5 to 21 with a qualifying disability) who are claimed as dependents on the parent's full-year Idaho resident return. There is no income limit for the credit. The advance payment is only for families whose modified adjusted gross income is at or below 300% of the federal poverty level.
Application window / next dates	Applications for the 2026 tax credit, or an advance payment awarded in 2027, open January 15, 2027 and close March 15, 2027, in TAP. The law requires award notices within 30 days of the window closing. If the $50 million cap isn't reached, the Tax Commission must reopen applications until August 15 or until the money runs out. The 2026 windows (January 15 – March 15 and May 21 – July 17, 2026) are closed.
Homeschool status	Homeschool families can apply. The Tax Commission's 2026 eligibility checklist defines a qualifying "nonpublic school" as a private school, homeschool, microschool or learning pod, and the law says homeschooling is not public school enrollment. A parent cannot claim payment for their own teaching, and any semester of full- or part-time public, charter or virtual charter enrollment is excluded.

How the tax credit works for homeschool families

Idaho doesn't fund an account or send money to a school. The program reimburses parents. Each year you choose one of two ways to receive it for each child, and either way you must apply and be approved first. The Tax Commission says plainly that a credit claimed on a return without an approved application won't be allowed.

The tax credit: you pay for qualifying costs during the calendar year, apply in the January–March window that follows, and, if you're approved, claim the credit on that year's Idaho Form 40. Because it is refundable, you get the full approved amount back even if it is more than the Idaho tax you owe. For example, the window that opens January 15, 2027 is for the 2026 credit, which covers qualifying costs you paid during 2026. Approval lets you claim up to the awarded amount; it does not pre-approve your expenses, and everyone is subject to audit.

The advance payment: families whose modified adjusted gross income is at or below 300% of the federal poverty level can ask for the money up front instead. It is paid once, to the bank account on the application, within 60 days of the award notice and no later than August 30 (for the second 2026 period, by November 14, 2026). You then have to match it to paid receipts for qualifying costs in the TAP Parental Choice Tax Credit Dashboard and repay anything you can't document. For the advance awarded in 2026, that reconciliation is due by December 31, 2027. A child can get an advance payment only once in their whole K–12 career, and a child who has already received a credit can't later get an advance. The Tax Commission says the advance awarded in 2026 is taxable on the 2026 federal return.

Who gets funded first: the pool is capped at $50 million a year and works on a first-come, first-served basis within priority groups. In 2026, families at or below 300% of the federal poverty level came first. Starting with the 2027 application period, the law gives first priority to parents who received a credit the year before, then to parents whose taxable income is at or below 300% of the federal poverty level, then everyone else in the order applications arrive. The Tax Commission keeps a waiting list.

How 2026 went: in the first window (January 15 – March 15, 2026) the Tax Commission received 6,069 applications for 10,809 students and awarded $33.4 million in credits and $8.84 million in advance payments. It reopened May 21 with more than $7 million left. The second window closed July 17, 2026, because the program had reached its nearly $50 million limit. The final count for 2026 was 7,055 applications covering 12,561 students. The Tax Commission's program statistics show $37.7 million in credits and

1.6 million in advance payments awarded for 2026, with no money left.

What the money can pay for

The law lists the qualified expenses (Idaho Code 63-3029N(2)(f)), and the Tax Commission says it can't pre-qualify individual purchases or publish a complete list. For homeschool families, these are the costs that may qualify:

A base curriculum that covers, at a minimum, English language arts, math, science and social studies. Starting with 2026 expenses, the curriculum can come from more than one vendor, as long as together it covers no more than K–12 academic instruction.
Textbooks
Tutoring in the four core subjects
Tuition or fees at a private school, microschool or learning pod that teaches the four core subjects
Nationally standardized assessments and prep courses for them, college admission tests, Advanced Placement exams and industry-recognized certification exams
Transportation to and from the place of academic instruction, logged by date, destination and miles. The Tax Commission says this covers trips between home and the qualifying nonpublic school, not field trips, music lessons or sports. Mileage is paid at the state rate: $0.70 a mile for 2025 through August 31, 2026, and $0.75 a mile from September 1, 2026.
Not covered: extracurricular and non-academic activities, a parent's own teaching, uniforms, entertainment, vacations, vehicles, gaming computers, big-screen TVs, dual-credit college courses, anything bought with an Empowering Parents grant, and anything paid for by Advanced Opportunities.

Getting ready for January 15, 2027

Keep paid receipts now. The 2026 credit covers qualifying costs paid in calendar 2026. A receipt must show the provider, what you bought, the amount, that you paid it and when. You'll upload copies of receipts when you apply for the credit.
Keep a portfolio or learning record. The law requires instruction that isn't from an accredited school to be documented in a portfolio of evidence or learning record showing your child's growth in the four core subjects. You won't upload it, but you'll need it in an audit. The Tax Commission says it can include report cards, assessments and standardized test results.
File your Idaho return. In 2026 applicants had to have filed a 2024 Idaho Form 40 listing the children as dependents, even if they normally don't need to file. As of October 2026 the Tax Commission hasn't said which year's return the January 2027 window will require, so file any outstanding return now and check myschoolchoice.idaho.gov before January 15. The Tax Commission says a paper return can take 7–11 weeks to process.
Set up TAP early. You apply from a Taxpayer Access Point account opened with your Social Security number or ITIN (not a business EIN). Registration can take up to two weeks, and the Tax Commission must have processed at least one of your Idaho returns first. Only one spouse on a joint return needs an account.
Gather documents: a government-issued ID, each child's Social Security number, proof of guardianship if it applies, and, for the $7,500 amount, documentation of a diagnosis from an Idaho licensed health care provider or IEP eligibility. Homeschool families claiming the disability amount should keep receipts showing they pay ancillary personnel to provide special services.
Apply early in the window. Within each priority group, applications are processed in the order received.
Watch public school enrollment. Any semester your child is enrolled full- or part-time in a public, charter or virtual charter school is excluded. That includes the Idaho Home Learning Academy and Idaho Virtual Academy, which are public schools. Starting with 2026 expenses, public school sports and other extracurriculars, activities with no academic credit, and IDLA courses you pay for yourself don't count as enrollment.
Answer the survey. Parents who received a credit get a satisfaction and engagement survey from the Legislative Services Office by January 15 and must return it by March 15. If you skip it, you can't receive the credit in later years.
Rules and dates change. Confirm anything important on myschoolchoice.idaho.gov or with the Tax Commission (parentalchoice@tax.idaho.gov, (208) 334-7660, toll free (800) 972-7660).

For vendors: taking part

There is no approved-vendor list, vendor registration or marketplace for the Parental Choice Tax Credit. Families pay you directly and later claim qualifying costs, so the most useful thing you can give them is a paid invoice or receipt that shows your business name, exactly what was bought (for example "8th grade math curriculum" or "4 hours of math tutoring"), the amount, and the date and method of payment.

The covered categories are narrow: core-subject curriculum and textbooks, tutoring in English language arts, math, science and social studies, private school, microschool or learning-pod tuition, and certain tests and test-prep courses. Enrichment, arts, sports, music lessons and therapies are not on the list in the law, so families can't count on those costs being claimable. Don't tell families a purchase "qualifies"; the Tax Commission decides at audit and says it can't pre-approve expenses.

Microschools and learning pods: the law treats a private school, microschool or learning pod that provides academic instruction in the four core subjects as a nonpublic school, in person or online. It does not give the state any control over a nonpublic school's creed, admissions or curriculum. Instruction that isn't accredited must be backed by a portfolio or learning record, so sharing progress reports with parents helps them.

Listing on My Learning Source is separate from the Parental Choice Tax Credit — the state doesn't approve vendors, and families find you here either way.

The 2026 court ruling and law changes

On February 5, 2026, the Idaho Supreme Court denied a petition challenging the tax credit (Committee to Protect and Preserve the Idaho Constitution v. State of Idaho, Docket 53264-2025) and dismissed it, leaving the program in place.

On April 2, 2026, Governor Little signed House Bill 934, which applies retroactively to January 1, 2026. Among other changes, it allows the required curriculum to come from more than one vendor, says that public school sports and extracurriculars, activities without academic credit, homeschooling and fee-paid IDLA courses are not public school enrollment, sets the advance-payment age limit at 19 (22 with a qualifying disability) by December 31, and, starting in 2027, gives application priority to parents who received a credit the year before.

The older Empowering Parents grant program ended. The Legislature eliminated it in 2025 (Senate Bill 1142), and no 2025–26 grants were awarded. Families who received earlier grants have three years from the date of issue to spend them in ClassWallet: grants issued in 2024 expire in 2027 and grants issued in 2025 expire in 2028. Purchases made with Empowering Parents money can't also be claimed for the tax credit.

Homeschooling in Idaho: the basics

The law: parents of a child who is at least 7 when school starts in their district, and not yet 16, must have the child instructed in subjects commonly and usually taught in Idaho's public schools. Instruction by, or at the direction of, the parent is one of the ways to meet that requirement. (Idaho Code 33-202)
No notice or registration: the Idaho Department of Education says Idaho does not regulate or monitor homeschooling, and there is no registration or sign-up. If your child is enrolled in a public school, make sure they are officially withdrawn first.
No testing or reporting: there are no state testing or reporting requirements, and the Department of Education keeps no list of homeschool families. It recommends keeping your own records of attendance and work. Districts and charter schools may let homeschool students sit for state tests if arranged in advance, but they don't have to.
Curriculum and teachers: parents choose the curriculum, and parents don't need a teaching license. The Idaho Content Standards show what public schools teach at each grade.
Diplomas: homeschool graduates don't receive a diploma from an accredited high school, and colleges may have extra admission requirements for them. If a child returns to public school, the school decides grade placement (for example by testing or reviewing records).
Costs: the Department of Education notes that homeschool costs are the family's responsibility, which is where the Parental Choice Tax Credit can help with core curriculum, textbooks, tutoring and testing.

Other Idaho programs: dual enrollment, Advanced Opportunities, scholarships and sports

Dual enrollment and sports: Idaho's dual enrollment law lets parents of homeschooled children enroll them in public school classes and programs (Idaho Code 33-203, which defines a nonpublic student to include a home school). Dual-enrolled students can join public school activities on the same terms as other students. To take part in non-academic activities that require academic eligibility, a homeschool student shows grade-level proficiency on a state-recognized test, portfolio or other approved method, or scores in the average range or higher on a nationally normed test. They must live within the school's attendance boundaries. The Idaho High School Activities Association applies the same terms in its Rule 8-16 and asks for proof of residence, such as a parent's driver's license or a recent utility bill. A student enrolled in a private or charter school that belongs to the association can't dual enroll for a sport that school offers. Keep in mind that a semester of part-time public school enrollment for academic credit can't be counted for the Parental Choice Tax Credit.

Advanced Opportunities: for 2026–27, Idaho public school students in grades 7–12 can use up to $4,625 for dual credit courses, exams and workforce training (Idaho Code 33-4602), and students at a Cognia-accredited Idaho private school can use up to

,500 (33-4603). The Department of Education warned in July 2026 that the nonpublic program's budget was cut for 2026–27, so those reimbursements may fall short of the limit and are paid in priority order. Homeschool students qualify by attending one of those schools; the Department of Education says attendance rules range from one course to full time, depending on the school. Many Idaho colleges, including community colleges, also offer homeschool students reduced dual-credit tuition of $75 a credit whatever school they attend. Ask each college.

College scholarships: the state-managed scholarships on Scholarship Idaho, including the Idaho Opportunity Scholarship, are open to graduates of an Idaho high school, home school, or Idaho GED/HSE program. The Opportunity Scholarship pays up to $3,500 a year, renewable for up to four years, and requires at least a 2.7 GPA and a FAFSA by March 1 (for this year's applicants, March 1, 2027). The Idaho LAUNCH grant for job training and college programs is also open to home school graduates in the current graduating class who are under 21 by April 15; it covers 80% of a program's tuition and fees, up to $8,000. The application opens October 1 and closes April 15, with a November 30 priority deadline because funds are limited. (Next Steps Idaho, Idaho Workforce Development Council)

Special education for homeschooled students

Special education: Idaho's Special Education Manual (2025 edition, in effect July 1, 2026) has its own chapter on homeschool students. It treats a homeschool as a nonpublic school, but not a private school. A student enrolled in a virtual public school or a public school's home learning program isn't counted as a homeschool student while enrolled there.

Child find: your school district must have an ongoing system to locate, identify and evaluate students with disabilities who live within its boundaries, from age 3 through the semester the student turns 21. That includes students whose parents homeschool them, and the district's child find for homeschoolers is to be similar to its child find for public school students. (Idaho Special Education Manual, Ch. 10)

Evaluations: the district must offer to evaluate a homeschool student identified through child find who may need special education, and it evaluates only after you give written consent. If you don't consent, or don't respond, the district can't use mediation or due process to override you, and it doesn't have to consider whether your child is eligible. The time from your written consent to the eligibility decision can't exceed 45 school days, with a few exceptions.

If your child qualifies: the district where you live must write an IEP that offers a free appropriate public education (FAPE), so you can make an informed choice between enrolling in public school and continuing to homeschool. The district can't require you to enroll first. If you're unsure, the district still writes the IEP, to be carried out once your child enrolls. If you make clear you will keep homeschooling, the district doesn't have to write one.

Services: the manual says a homeschool student does not have an individual right to the special education and related services they would get in public school. Idaho's homeschool chapter doesn't describe a services plan; the manual defines services plans for children their parents place in private schools.

Dual enrollment: Idaho law lets you enroll a homeschool student in any public school, including a public charter school, for dual enrollment purposes (Idaho Code 33-203). Once your child is dually enrolled, the district must provide appropriate services to a student who is eligible for special education and otherwise qualified for its programs. Those services are provided only in the public school setting, and your child stays a nonpublic school student.

Leaving public school: when you withdraw a child to homeschool, the district must tell you in writing that its obligation to provide FAPE has changed, and that it is willing to resume services if your child re-enrolls.

Disagreements: parents of homeschool students can ask for a due process hearing only about child find and evaluation. To challenge decisions about services, use the Idaho Department of Education's state complaint process. Any individual or organization can file one, about a violation no older than one year from the date the department receives it. The department's Dispute Resolution office also offers facilitation and mediation at no charge to the parent or the district (disputeresolution@sde.idaho.gov).

Tax credit: in the Parental Choice Tax Credit, a student can be considered for the $7,500 disability amount (2026) if you document a diagnosis by an Idaho licensed health care provider or eligibility for services under an IEP, and the student also requires ancillary personnel as defined in Idaho Code 33-2001(1). The Tax Commission says the money can't be used for a semester when your child was enrolled in a public school. Its exceptions starting with 2026 expenses are public school sports and extracurriculars, activities with no academic credit and IDLA courses the state doesn't pay for. Its FAQ doesn't mention dual enrollment for special education services, so ask the school and the Tax Commission before you dual enroll.

Official sources

My Learning Source is an independent marketplace. We are not affiliated with the Idaho State Tax Commission or the Idaho Parental Choice Tax Credit program, and nothing here is tax advice. The state does not approve vendors for this program, and a listing here does not mean a purchase qualifies for the credit.

As of October 2026.

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