Keep education receipts for tax credits and subtractionsAs students prepare for the upcoming school year, the Minnesota Department of Revenue is reminding parents to save receipts from school supply purchases.
By: Staff Report, Alexandria Echo Press
As students prepare for the upcoming school year, the Minnesota Department of Revenue is reminding parents to save receipts from school supply purchases. Doing so could qualify them for tax credits or subtractions on their 2010 state income tax returns.
There are two tax provisions that help Minnesota families pay expenses related to their child’s education: the refundable K-12 education credit and the K-12 education subtraction.
Both programs reduce the tax parents must pay and could provide a larger refund when filing a 2010 Minnesota Individual Income Tax Return. To qualify, parents must have purchased educational services or required materials during 2010 to assist with their child’s education. The child also must be attending kindergarten through 12th grade at a public, private or home school.
“The cost of school supplies can add up quickly, creating a challenge for family budgets,” said Revenue Commissioner Ward Einess. “Something as easy as holding onto educational receipts can really make a difference for thousands of Minnesota families when it comes time to filing their taxes.”
Generally, most expenses paid for educational instruction or materials qualify, including paper, pens and notebooks; textbooks; rental or purchases of educational equipment such as musical instruments; computer hardware and educational software; after school tutoring and educational summer camps. There are no income restrictions to qualify for the education subtraction; income restrictions only apply to the education credit.
Qualifying income guidelines for education credit:
Number of qualifying children in K-12: Your household income must be less than:
1-2 – $37,500
3 – $39,500
4 – $41,500
5 – $43,500
6 or more – $43,500 plus $2,000 for each additional qualifying child
Even taxpayers who are not required to file an income tax return should do so in order to claim a refund for the education credit.
For more information, visit the department’s website at www.taxes.state.mn.us or call (651) 296-3781 in the metro area or 1-800-652-9094 elsewhere in Minnesota.