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Last Updated: 1/25/2018

Education Savings Account Contribution Credit

Beginning in tax year 2017, Minnesota residents that contribute to a section 529 college savings plan may be eligible for a nonrefundable credit.
 

Do I qualify for this credit?

You may qualify if you are a Minnesota resident or part-year resident who contributes to a qualified section 529 college savings plan and meets certain income guidelines. However, you may not claim the credit if you claim the Education Savings Account Contribution Subtraction.
 
You must have made contributions to a qualified plan by December 31, 2017 to qualify for the 2017 credit.
 

How much is the credit?

The credit is 50% of contributions made during the year up to a maximum of $500. This credit phases out if you have an Adjusted Gross Income (AGI) over $75,000.
 
 ​If your filing status is ​ And your Adjusted Gross 
 Income (AGI) is
​ Your maximum credit is
 Single, head of household, or
 married filing separate


​ less than $75,000 ​ $500
​ between $75,000 and $100,000 ​ $500 reduced by 2% of AGI 
 exceeding $75,000
​ more than $100,000 ​ $0 (You are not eligible)
 Married filing jointly​ ​



 

​ ​ ​
​ less than $75,000 ​ $500
​ between $75,000 and $100,000 ​ $500 reduced by 1% of AGI
 exceeding $75,000
​ between $100,000 and $135,000 ​ $250
​ between $135,000 and $160,000 ​​ $250 reduced by 1% of AGI
 exceeding $135,000
​ more than $160,000 ​ $0 (You are not eligible)

Do I have to contribute to a Minnesota plan?

No. Many states offer section 529 college savings plans. Contributions to qualifying accounts are eligible regardless of which state administers the plan.
 

Do I have to be the account owner or beneficiary for my contributions to qualify?

No. You may claim this credit for your contributions to any qualifying account regardless of the owner or beneficiary.
 

How do I claim this credit?