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Minnesota School Supply Tax Credits

Minnesota has “…two tax provisions that help Minnesota families pay expenses related to their child’s education: the refundable K-12 education credit and the K-12 education subtraction.”

What’s the Difference Between Credit and Subtraction?

K-12 Credit – Household income must meet certain limit for the year; filing status cannot be married filing separate; and credit is limited to 75 percent of paid qualifying expenses.

K-12 Subtraction – Qualifying child “…must attend a school located in Minnesota, Iowa, North Dakota, South Dakota or Wisconsin.” Applies to tuition paid for private schools and/or college courses used to satisfy high school graduation requirements and is limited to the following:

  • $1,625 for each qualifying child in grades K-6
  • $2,500 for each qualifying child in grades 7-12.

Specific Qualifications For K-12 Credit

  • A child must be attending a public, private or home school grade kindergarten through 12th.
  • Household income must meet certain criteria*.
  • Taxpayer must file an income tax return with the state of Minnesota to claim a refund.
  • School supply receipts must be saved to verify purchases.
  • You paid qualifying educational expenses during the year for the child’s education.

*Household Income Qualification For K-12 Credit

  • 1-2 qualifying children – income must be less than $37,500
  • 3 qualifying children – income must be less than $39,500
  • 4 qualifying children – income must be less than $41,500
  • 5 qualifying children – income must be less than $43,500
  • 6 qualifying children – income must be less than $45,500
  • 7 qualifying children – income must be less than $47,500
  • 8 or more qualifying children – add $2,000 for each additional child

What Items Qualify As School Supplies?

  • Textbooks, music books, math books, art books, reading books, science books
  • Instructional materials such as paper, erasers, pens, notebooks, rulers, art supplies, computer paper, home economics supplies
  • Musical instruments (rental or purchase)
  • Calculators
  • Computer, printer, monitor, hard drives
  • Adaptive equipment for students with disabilities or educational software

Evidence of Qualified Purchases

To prove you paid the expenses requested for credit or subtraction, you must maintain valid records such as “…itemized cash register receipts, invoices and canceled checks. (However, canceled checks alone may not be enough to prove you had paid education expenses.)”

For even more details read Income Tax Fact Sheet 8a: Qualifying Home School Expenses for K-12 Education Subtraction and Credit.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”