MN DEPARTMENT OF REVENUE REMINDING FAMILIES THEY MAY QUALIFY FOR TAX BENEFITS ON SCHOOL SUPPLY PURCHASES

The Minnesota Department of Revenue is reminding people that many school supply purchases may qualify for valuable K-12 tax benefits on your 2021 Minnesota income tax return.

“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 state tax and could provide you a larger refund when filing your Minnesota income tax return. 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 I qualify for these tax benefits?

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

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

Separate requirements apply for credit and subtraction.

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

Many 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: