With back-to-school coming up quickly, a reminder is being issued for you to save your receipts to claim K-12 tax benefits when filing your taxes next year.
Due to changes made during the legislative session, over 31,000 more Minnesota families can claim the credit this year. Two tax benefits can help families pay their child’s education expenses: the refundable K-12 Education Credit and the K-12 Education Subtraction.
Last year, more than 17,000 families received the K-12 Education Credit for an average credit of $280. Over 134,000 families received the K-12 Education Subtraction for an average subtraction of $1,266.
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 attend kindergarten through 12th grade at a public, private, or qualified home school and meet other qualifications.
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), and After-school tutoring and educational summer camps taught by a qualified instructor.
