For those of us not in Oklahoma, this is a refundable credit available in that state.  It's exempt from state tax, but I'm not aware of any federal exclusion.  "The Parental Choice Tax Credit program provides a refundable income tax credit of $5,000-$7,500 for eligible Oklahoma Taxpayers who pay, or expect to pay, qualified expenses such as tuition and fees to an eligible private school on behalf of an eligible student that attends or plans to attend an eligible private school during that tax year."

I'm not sure what program you are using, is "screen 14.2" a Lacerte thing?