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Last Updated: 1/4/2019

Education Savings Account Contribution Credit

If you contribute to a section 529 college savings plan, you may be eligible for a nonrefundable credit.
 
Note: Before claiming this credit, review Schedule M1NC, Federal Adjustments, and determine if you must file this schedule. For more information, see Federal Adjustments.

Do I qualify for this credit?

You may qualify for the 2018 credit if all of the following are true:
  • You are a Minnesota resident or part-year resident.
  • You meet certain income guidelines. (See the table below.)
  • You contributed to any state-sponsored section 529 college savings plan, including prepaid tuition plans. Contributions to qualified plans are eligible regardless of which state administers the plan.
  • You made contributions to a qualified plan by December 31, 2018.
You may not claim this credit if any of the following apply:

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

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

What are qualified expenses for 529 plans?

Qualified expenses include costs required to attend a post-secondary educational institution. Amounts paid for K-12 education are not qualified expenses.
 

How much is the credit?

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


​ less than $76,490 ​ $500
​ between $76,490 and $101,990 ​ $500 reduced by 2% of Minnesota AGI 
 exceeding $76,490
​ more than $101,990 ​ $0 (You are not eligible)
 Married filing jointly​ ​



 

​ ​ ​
​ less than $76,490 ​ $500
​ between $76,490 and $101,990 ​ $500 reduced by 1% of Minnesota AGI
 exceeding $76,490
​ between $101,990 and $137,680 ​ $250
​ between $137,680 and $162,680 ​​ $250 reduced by 1% of Minnesota AGI
 exceeding $137,680
​ more than $162,680 ​ $0 (You are not eligible)

How do I claim this credit?

 

What if I claim this credit and use account funds for nonqualified expenses?

You may be required to pay back some or all of the benefits you received.