School supply purchases may qualify for tax benefits

(ABC 6 News) – It’s that time of year to start back-to-school shopping as the new school year is quickly approaching.

The Minnesota Department of Revenue says that many school supply purchases may qualify for valuable K-12 tax benefits on 2022 Minnesota income tax returns, and to remember to save school supply receipts.

“Summer is in full swing, but we know it goes all too fast here in Minnesota,” said Revenue Commissioner Robert Doty. “When you’re out ‘back to school’ shopping, be sure to save your receipts so you can claim the K-12 Education Credit or Subtraction. This will help save money when it comes time to file taxes next year.”

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 a person’s state tax and could provide a larger refund when filing state income tax returns.

Last year, more than 19,000 families received the K-12 Education Credit and saved an average of $261. Nearly 130,000 families received the K-12 Education Subtraction with an average subtraction of $1,207.

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 qualified home school
  • You purchased qualified education-related expenses in 2022 to assist with the child’s education

Separate requirements apply for the credit and subtraction.

  • K-12 Education Subtraction: There are no income limits for the subtraction.
  • K-12 Education Credit: Your household income (taxable and nontaxable income) must be below the levels shown below. You must file a Minnesota return to claim the credit, even if you are not required to file. If you are married, you and your spouse must file a joint return to qualify.

If there are 1 or 2 qualifying children in K-12, household income must be less than $37,500.
If there are 3 qualifying children in K-12, household income must be less than $39,500.
If 4 or more qualifying children in K-12, 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 on qualifying expenses CLICK HERE.