Save Back-to-School Shopping Receipts to Claim Valuable Tax Benefits!

It’s time to start back-to-school shopping! The Minnesota Department of Revenue reminds tax professionals that most school supplies qualify for valuable K-12 tax benefits on their clients’ 2021 Minnesota income tax returns. Remind your clients to save their school supply receipts.

“Purchasing school supplies is an investment that nearly every parent or caregiver in Minnesota makes on a yearly basis,” said Revenue Commissioner Robert Doty. “Save receipts from these purchases, including distance learning needs, and claim the K-12 Education Credit or Subtraction. This will help save money 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 K-12 Education Credit and the K-12 Education Subtraction.

Both benefits reduce your clients’ state tax and could provide a larger refund when filing Minnesota income tax returns. Last year, more than 33,000 families received the K-12 Education Credit and saved an average of $250. Nearly 190,000 families received the K-12 Education Subtraction.

Do my clients qualify for these tax benefits?

To qualify for either the credit or subtraction, both of these must be true:

• Your client has a qualifying child attending kindergarten through 12th grade at a public, private, or home school
• Your client purchased education-related expenses in 2021 to assist with the child’s education

Separate requirements apply for the credit and subtraction.

• K-12 Education Subtraction: There are no income limits for the education subtraction.
• K-12 Education Credit: Your client’s household income (taxable and nontaxable income) must be below the levels shown in the table. If they qualify for the credit but do not need to file a Minnesota return, they must file a return to claim the credit. If your client is married, they must file a joint return to qualify.

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

What education-related expenses qualify? 

Most expenses for educational instruction or materials may qualify, including:

• Paper and notebooks
• Pens and pencils
• Nonreligious textbooks
• Rental or purchases of educational equipment, including musical instruments
• Computer hardware (including 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

Internet service or access fees do not qualify.

 For more information, visit:

• Qualifying Expenses for the K-12 Education Credit and Subtraction Page
• Our video on how the credit works