With a new school year on the horizon, parents and caregivers are reminded to save receipts on school supply purchases in order to claim valuable K-12 tax benefits when filing their taxes next year.

“Purchasing school supplies is an investment that nearly every parent or caregiver in Minnesota makes on a yearly basis,” said Revenue Commissioner Robert Doty. “Saving receipts from these purchases, including distance learning needs, and claiming the K-12 Education Credit or Subtraction will help save money or increase a refund when it comes time to file taxes.”   

Two tax benefits can help Minnesota families pay expenses related to their child’s education: the refundable K-12 Education Credit (income limits apply) and the K-12 Education Subtraction (no income limits).

These programs reduce the tax parents pay and could deliver a larger refund when filing a Minnesota income tax return. To qualify, the purchases must be for educational services or required materials. The child must be attending kindergarten through 12th grade at a public, private, or home school and meet other qualifications.

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.

Save those receipts

Remember to save receipts to claim the credit or subtraction. Most expenses for educational instruction or materials qualify, including:

• Paper

• Pens and notebooks

• Textbooks

• Rental or purchases of educational equipment such as musical instruments

• Computer hardware, such as 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

Fees for internet service do not qualify.

K-12 Education 

Subtraction

There are no income limits to qualify for the education subtraction. Most parents qualify. Parents can claim the K-12 Subtraction for tuition paid to private schools or college courses used to satisfy high school graduation requirements.