Families Urged to Save Back-to-School Receipts for Valuable K-12 Tax Benefits

(KNSI) – Minnesota families getting their back-to-school shopping done should hold onto their receipts, so they can claim two valuable tax benefits to help offset education-related expenses for students in kindergarten through 12th grade.

The Minnesota Department of Revenue is reminding everyone about the K-12 Education Credit and K-12 Education Subtraction. The programs helped more than 158,000 families last year put some change back in their pockets for their children’s educational expenses. Both programs cover a wide range of educational expenses for children attending public, private, or home schools.

Qualifying purchases include basic school supplies like paper, pens, and notebooks, along with textbooks and educational materials. Parents can also claim rental or purchase costs for educational equipment, including musical instruments, as well as computer hardware such as hotspots, modems, and routers. Educational software qualifies for up to $200 per program, and families can also claim expenses for after-school tutoring services and educational summer camps. While internet service fees do not qualify for either program, the hardware needed to access online educational resources does qualify for the benefits.

The refundable K-12 Education Credit provides direct tax relief for lower and middle-income families, with income limits based on household size. Last year, families receiving the credit saved an average of $379 per family.

Families with one or two children must have a household income of less than $79,700 a year. A family can earn an additional $3,000 for each child after that and still qualify.

The K-12 Education Subtraction has no income limits. People claimed an average subtraction of $1,438. This benefit is particularly valuable for parents paying private school tuition or college courses that satisfy high school graduation requirements.

The key to claiming these benefits is documentation. Families must save their receipts throughout the school year to claim either the credit or subtraction when filing taxes. The department suggests using a folder or envelope to store receipts for the upcoming tax filing season.

For a video explaining how to claim the credits, click here.

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