Back to School Shopping Tax Benefits

As you begin back to school shopping with your children in grades K-12 in Minnesota remember to keep the receipts.   Parents can use the costs incurred to purchase most school supplies to benefit them on their 2015 Minnesota tax return.  Families can either qualify for the refundable K-12 education credit (income limits apply) or the K-12 subtraction (no income limits).

To qualify for either K-12 education tax benefit parents are required to purchase educational services or required materials during 2015.  The student must be enrolled and attending Kindergarten through 12th grade in a public, private or home school.  Some examples of items that qualify include pens, paper, notebooks, textbooks, musical instrument rent or purchase, computer hardware and educational software, after-school tutoring, and educational summer camps taught by qualified instructors.

K-12 Education Credit Income Limits:

  • 1-2 qualifying children                                                        $37,500
  • 3 qualifying children                                                           $39,500
  • 4 or more qualifying children                                            $2,000 added for each additional child

K-12 Education Subtraction

Most families will qualify for the education subtraction as there are no income limits.  Organize receipts to ensure you receive the maximum subtraction allowed.