School supplies are expensive; families urged to take advantage of tax benefits

As inflation continues to eat away at family budgets, parents are encouraged to save receipts on school supply purchases to take advantage of Minnesota tax credits.
The Minnesota Department of Revenue reminds parents to use the receipts to claim valuable K-12 tax benefits when filing their taxes next year.
In addition, due to changes made during the legislative session, over 31,000 more Minnesota families will be able to claim the credit this year.
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).
“As a parent and grandparent, I know the strain that families feel during back-to-school time trying to balance the need for new school supplies with other family expenses,” said Revenue Commissioner Paul Marquart.
“Saving school supply shopping receipts and claiming either the K-12 Education Subtraction or the expanded K-12 Education Credit will help Minnesota families save some money when filing their taxes next year.”
Last year more than 17,000 families received the K-12 Education Credit for an average credit of $280. Over 134,000 families received the K-12 Education Subtraction for an average subtraction of $1,266.
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 qualified home school and meet other qualifications.
 
Save those receipts
Remember to save your receipts to claim the credit or subtraction.
Use a folder or envelope to store receipts for the upcoming tax filing season or pick up a special envelope at our State Fair booth, located in the Education Building.
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 (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.
Details are available at revenue.state.mn.us.