News Release: Back to school shopping? Save your receipts for valuable tax benefits!

 

 

FOR IMMEDIATE RELEASE

July 25, 2014

 

Contact: Lisa Erickson

Phone: 651-556-6397

Lisa.erickson@state.mn.us 

 

Back to school shopping? Save your receipts for valuable tax benefits! 

  

ST. PAUL – Back to school shopping is just around the corner so don’t forget to save your school supply receipts. The Minnesota Department of Revenue wants to remind parents that most school supplies could qualify for valuable K-12 tax benefits on their 2014 Minnesota return.

 

“Investing in your child’s education, including necessary supplies, is important to parents,” said Revenue Commissioner Myron Frans. “Keeping the receipts for these purchases can help parents with that investment and lead to savings when you’re filing your taxes next year.”

 

Be sure to visit our booth at the Minnesota State Fair in the Education Building where you can get special envelopes for your school supply receipts!  

 

There are two tax benefits that help Minnesota families pay expenses related to their child’s education: the refundable K-12 education credit (income limits apply) and the K-12 subtraction (no income limits).

 

Both programs reduce the tax parents pay and could provide a larger refund when filing a 2014 Minnesota income tax return. To qualify, parents must have purchased educational services or required materials during 2014 to assist with their child’s education. The child must also be attending kindergarten through 12^th grade at a public, private, or home school and meet other qualifications. Remember to save your receipts to claim the credit or subtraction.  

  

Generally, most expenses paid for educational instruction or materials qualify, including paper, pens and notebooks; textbooks; rental or purchases of educational equipment such as musical instruments; computer hardware and educational software; after-school tutoring and educational summer camps taught by a qualified instructor.

 

Household Income for the K-12 Education Credit: 

  

Number of qualifying children in K-12:                       Your household income must be less than: 

1-2……………………………………………................$37,500 

3………………………………………………………… $39,500 

4 or more……………………………………………… add $2,000 for each additional child 

  

Even taxpayers who are not required to file an income tax return should do so in order to claim a refund for the education credit if eligible.

 

Last year, more than 53,000 families received the K-12 education credit, saving them an average of $265.

 

K-12 Education Subtraction: There are no income limits to qualify for the education subtraction. Most parents qualify for the education subtraction.

 

Check out our video on how the credit works.

 

Learn more about other education-related tax credits and deductions that passed as part of the 2014 middle class tax cuts.

 

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