Save those back-to-school shopping receipts for valuable tax benefits

ST. PAUL, Minn. - As students of all ages prepare for another school year, the Minnesota Department of Revenue reminds parents and caregivers to save receipts on school supply purchases to claim valuable K-12 tax benefits when filing their taxes next year.

“With July behind us, we know the upcoming school year is front of mind for many Minnesota students and their families,” said Revenue Commissioner Robert Doty. “When back to school shopping, parents should remember to save those receipts and be sure to claim either the K-12 Education Credit or Subtraction when they file their income tax returns next year. It could save them money on their tax bill or put money in their pockets in the form of a larger refund.”

Two tax benefits can help Minnesota families pay expenses related to their child’s education: the refundable K-12 Education Credit (income limits apply) and the K-12 Education Subtraction (no income limits).

Last year, more than 19,000 families received the K-12 Education Credit and saved an average of $261. Nearly 130,000 families received the K-12 Education Subtraction with an average subtraction of $1,207.

These programs reduce the tax parents pay and could deliver a larger refund when filing a Minnesota income tax return. To qualify, the purchases must be for educational services or required materials. The child must be attending kindergarten through 12^th grade at a public, private, or home school and meet other qualifications.

Save those receipts

Remember to save your receipts to claim the credit or subtraction. Use a folder or envelope to store receipts for the upcoming tax filing season or pick up a special envelope at our State Fair booth, located in the Education Building.

 Most expenses for educational instruction or materials qualify, including:

• Paper
• Pens and notebooks
• Textbooks
• Rental or purchases of educational equipment such as musical instruments
• Computer hardware (hotspots, modems, and routers) and educational software (up to $200 for the subtraction and $200 for the credit) *
• After-school tutoring and educational summer camps taught by a qualified instructor

 *Fees for internet service do not qualify

Household Income for the K-12 Education Credit 

Number of qualifying children in K-12	Household income must be less than
1 or 2	$37,500
3	$39,500
4 or more	Add $2,000 for each additional child

  

Taxpayers who are not required to file an income tax return must do so in order to claim a refund for any eligible education credit.

 K-12 Education Subtraction

There are no income limits to qualify for the education subtraction. Most parents qualify. Parents can claim the K-12 Subtraction for tuition paid to private schools or college courses used to satisfy high school graduation requirements.

Check out our video to learn more about the K-12 education tax credit.

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