Back to School deductions

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 your clients’ state tax and could provide a larger refund when filing Minnesota income tax returns. Last year, more than 36,000 families received the K-12 Education Credit and saved an average of $251. Nearly 192,000 families received the K-12 Education Subtraction.

Do my clients qualify for these tax benefits?
To qualify for either the credit or subtraction, both of these must be true:

• Your client has a qualifying child attending kindergarten through 12th grade at a public, private, or home school
• Your client purchased education-related expenses in 2020 to assist with the child’s education

Separate requirements apply for the credit and subtraction.

• K-12 Education Credit: Your client’s household income (taxable and nontaxable income) must be below the levels shown in the table. If they qualify for the credit but do not need to file a Minnesota return, they must file a return to claim a refund for the credit. If your client is married, they must file a joint return to qualify.

Number of qualifying children in K-12         Household income must be less than
1 or 2                                                                      $37,500
3                                                                             $39,500
4 or more                                                             Add $2,000 for each additional child

• K-12 Education Subtraction: There are no income limits for the education subtraction.

​What education-related expenses qualify? 
Most 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 (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