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It?ll be time to start back-to-school shopping before you know it! The Minnesota Department of Revenue reminds tax professionals that most school supplies qualify for valuable K-12 tax benefits on their clients? 2022 Minnesota income tax returns.?Remind your clients to save their school supply receipts.
?Summer is in full swing, but we know it goes all too fast here in Minnesota,? said Revenue Commissioner Robert Doty. ?When you?re out ?back to school? shopping, be sure to save your receipts so you can claim the K-12 Education Credit or Subtraction. This will help save money when it comes time to file taxes next year.?
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 19,000 families received the K-12 Education Credit and saved an average of $261. Nearly 130,000 families received the K-12 Education Subtraction with an average subtraction of $1,207.
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 2022 to assist with the child?s education
Separate requirements apply for the credit and subtraction.
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K-12 Education Subtraction:?There are no income limits for the education subtraction.
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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.
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Number of qualifying children in K-12
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Household income must be less than
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1 or 2
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$37,500
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3
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$39,500
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4 or more
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Add $2,000 for each additional child
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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, see:
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