K-12 Education Subtraction and Credit
Minnesota offers two tax relief programs for families with children in kindergarten through 12th grade: the K-12 Education Credit and the K-12 Education Subtraction. These programs help reduce your Minnesota income tax liability and may result in a larger refund. You may claim either the credit or the subtraction, but not both for the same expenses.
Eligibility for the K-12 Education Credit
- You must have paid qualified education expenses for a qualifying child in grades K-12 during the tax year.
- A qualifying child is defined the same way as for the federal Earned Income Credit.
- Your adjusted gross income must be below the income limit based on the number of qualifying children.
- You must file a Minnesota income tax return to claim the credit.
Qualifying Expenses
Expenses that qualify for the credit include tuition, required materials, and other education-related costs. You must keep detailed records, including canceled checks, invoices, and itemized receipts, as proof of payment.
K-12 Education Subtraction
- If you cannot use all your education expenses for the credit, you may use them for the K-12 Education Subtraction.
- You may also use tuition expenses that do not qualify for the credit under this subtraction.
- Complete the Worksheet for Line 13 on Schedule M1M to determine the amount to enter.
- Enter each child’s name and grade at the time expenses were paid on line 13 of Schedule M1M.
Important Notes
- You cannot claim both the credit and subtraction for the same expenses.
- If you used distributions from a higher education savings account (like a 529 plan) for K-12 tuition, you must include the lesser of the distributions or earnings reported on federal Form 1099-Q on line 6 of Schedule M1M.
- Keep all receipts and records for at least three years in case of an audit.
Source:
Schedule M1ED, K-12 Education Credit
Schedule M1M, Income Additions and Subtractions
Form M1 Instructions
Schedule M1529, Higher Education Savings Accounts
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.