Serenity Tax & Bookkeeping Services 218-464-1510 - Duluth Minnesota
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Back to School deductions

8/11/2020

1 Comment

 
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
1 Comment
bookkeeping melton link
9/21/2020 10:22:46 am

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.
Thanks

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215 N Central Ave Ste 9
Duluth, MN 55807
Spirit Valley Shopping Center

Serenity Tax & Bookkeeping Services LLC

We at Serenity strive to be a cost savings support for all of our Bookkeeping, Payroll and Tax Clients. At Serenity we have created an environment for our clients that gives them comfort and confidence.
Our no nonsense approach to giving them the best accounting, tax knowledge and service keeps them coming back and referring new clients. ​218-464-1510 

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