MINNEAPOLIS (WCCO) – Parents of K-12 students can claim tax benefits if they save receipts for the school supplies they bought for the school year.
There are two tax benefits which can help Minnesota families pay expenses related to their child’s education: the refundable K-12 Education Credit and the K-12 Education Subtraction. While income limits apply to the education credit, they do not apply to the education subtraction.
To qualify, the purchases must be for educational services or required materials, and the child must be attending kindergarten through 12th grade at a public, private, or home school. Most expenses for educational instruction or materials qualify, including paper, pens, notebooks, textbooks, computer hardware, software, and after-school tutoring.
“This year, distance learning may have changed the nature of these investments, but parents should still keep receipts for these purchases, including distance learning needs, and claim the K-12 Education Credit or Subtraction to help save money when it comes to file taxes in 2021,” said Revenue Commissioner Cynthia Bauerly.
According to the Minnesota Department of Revenue, more than 36,000 families received the education credit last year, saving an average of $251. Nearly 192,000 families received the education subtraction.
To qualify for the education credit, a family with one or two children must have a household income of less than $37,500. A family with three children must have a household income of less than $39,500. With each additional child, the household income limit rises by $2,000.
To learn more about the programs, click here.