Frequently Asked Questions for Families

If you are due a refund when you file your state income tax return, we will send your refund to the lender that issued you the K-12 Education Credit loan up to the amount you owe the lender.

If you owe any other Minnesota taxes or government debts, we will apply your refund to the amount owed before sending them to your lender.

We will continue to apply your state income tax refund each year until your state taxes, government debts, and lender claims are paid in full.

You must provide the lender your Social Security Number and full name so that we can match your request to your tax records. They will also ask for information to ensure you qualify for the credit.

Yes. Keep a detailed record of your payments for education-related expenses. We may ask you to show these records if we have questions.

If you do not provide the receipts we request, we may adjust or deny the credit. We require proof of purchase to validate your claim for the credit.

If you were married when you assigned the credit and became separated or divorced, both parties are still responsible for the loan.

If you were single when you assigned the credit, then marry and file a joint tax return, we will apply your joint refund to the loan. You can contact the lender to try to recover the amount applied. We cannot adjust the assignment.

The vendor should provide an itemized receipt allocating the purchase price to the various package items. If an item within the package is not clearly identifiable on the receipt, we may not allow the K-12 Education Credit for that item.

This allocation must be based on the fair market value (FMV) of the items in the bundled package. Vendors use this formula for allocation:

(FMV of each item you received / Total FMV of all items you received) x Your purchase price

The total purchase price must be allocated to all items you received, including vendor-provided “gift” items (conditioned on the purchase of other items). The vendor does not need to allocate individual goods and services with a FMV of less than 2% of the total purchase price.

Your expenses for these educational goods or services only qualify if you paid them to the vendor during the tax year that you claim the credit.

Example

You purchased a $600 educational program from ABC Summer Camp for your qualifying child. The camp provided you with an itemized receipt for this purchase.