Back-to-school shopping time can also be tax savings time for Minnesota families
ST. PAUL, Minn. - With summer winding down and another school year on the horizon, 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.
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 43,000 families received the K-12 Education Credit for an average credit of $333. Over 118,000 families received the K-12 Education Subtraction for an average subtraction of $1,395.
“Claiming either the K-12 Education Subtraction or the K-12 Education Credit will financially benefit Minnesota families by reducing the tax they pay and could deliver a larger refund when filing a Minnesota income tax return,” said Revenue Commissioner Paul Marquart. “By saving those receipts for qualifying education purchases, you will have the information needed at the time of filing to claim the credit or subtraction as well as the documentation necessary in case we need the information from you to verify your tax return information.”
To qualify, the purchases must be for educational services or required materials. The child must be attending kindergarten through 12th grade at a public, private, or qualified 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 | $79,760 |
| 3 | $82,7600 |
| More than 3 | $85,760 plus $3,000 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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