Back-to-school shopping? Saving receipts can mean valuable tax benefits!

If you are a parent, it’s almost time to start back-to-school shopping. The Minnesota Department of Revenue reminds you that most school supplies could qualify for valuable K-12 tax benefits on your 2018 Minnesota income tax return. Do not forget to save your school supply receipts.

 

“Each year, parents invest in their children’s education by purchasing school supplies,” said Revenue Commissioner Cynthia Bauerly. “Keeping the receipts for these purchases can help parents save when it comes time to file taxes.”

  

What K-12 tax benefits does Minnesota offer?

  

Two Minnesota tax benefits help families pay their child’s education expenses: the refundable K-12 Education Credit (income limits apply) and the K-12 Education Subtraction (no income limits). Both benefits reduce your state tax and could provide you a larger refund when filing your 2018 Minnesota income tax return.

 

Do I qualify for these tax benefits?

 

To qualify, you must have purchased educational services or required materials in 2018 to assist with your child’s education. Your child must also be attending kindergarten through 12th grade at a public, private, or home school. Other requirements apply for the credit and subtraction.

 

• K-12 Education Credit: Your “household income” (taxable and nontaxable income) must be below a certain level to qualify for the credit. If you qualify for the credit but do not need to file an income tax return, you should file a return to claim a refund. For income requirements, see the table below:

 

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

 

• K-12 Education Subtraction: Most parents may qualify for the education subtraction because there are no income limits.

 

What educational expenses qualify? 

 

Generally, most expenses paid for educational instruction or materials qualify, including:

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

 

If you will be at the Minnesota State Fair, stop by our booth in the Education Building. You can get special envelopes at our booth to keep track of your school supply receipts.

  

Last year, more than 37,500 families received the K-12 Education Credit, saving them an average of $241. Over 186,000 families received the K-12 Education Subtraction.

 

To learn more about the K-12 Education Credit, see our video on how the credit works.