Tax programs available to defray school costsAs families begin a new school year, State Representative Torrey Westrom, R-Elbow Lake, offers a reminder about tax programs available to help eligible families cut down on costs.
As families begin a new school year, State Representative Torrey Westrom, R-Elbow Lake, offers a reminder about tax programs available to help eligible families cut down on costs.
Saving receipts could pay off for parents at tax time.
Minnesota has two programs – the K-12 education subtraction and the K-12 education credit – to help families pay expenses related to their child’s K-12 education, Westrom noted.
Both programs lower the tax parents must pay and may even provide a larger refund when they file Minnesota Form M1, Individual Income Tax Return.
Those who purchased educational material or services for their child’s K-12 education may be able to subtract qualifying expenses, up to the maximum amounts, from their taxable income when they file Form M1.
Unlike the education credit, there is no income limit to qualify for the K-12 education subtraction, and parents may qualify regardless of filing status. However, the school the child attended must be located in Minnesota, Iowa, North Dakota, South Dakota or Wisconsin.
The education credit is a refundable credit that reduces a filer’s state income tax liability. Those who meet the eligibility requirements may claim a credit on Form M1 equal to 75 percent of qualifying expenses that were paid during the year for a child’s K–12 education, up to the maximum amounts.
Complete information, including income and expense limits, can be found on the Minnesota Department of Revenue’s Web site. Log on to: http://www.taxes.state.mn.us/taxes/individ/other_supporting_content/inctaxfs8.shtml. Or call 1-800-652-9094 for details.