Back-to-school shoppers in Minnesota may be eligible for thousands in tax benefits
MINNEAPOLIS -- Back-to-school shopping may be back of mind right now for some, but whether you want to believe it or not, school is just weeks away.
"A lot of parents, like a lot of programs, they don't realize there's this tax benefit out there," said Paul Marquardt, Commissioner of the Minnesota Department of Revenue.
There are two tax benefits to be aware of: The K-12 Education Subtraction and the K-12 Education Credit.
The K-12 Education Subtraction is a deduction off your taxable income.
Regardless of income, you can subtract up to $1,625 for each child in K-6, and up to $2,500 for each child in 7th through 12th grade for school supplies.
Last year, more than 130,000 families received the K-12 Education Subtraction, with an average subtraction of $1,266, according to the Minnesota Department of Revenue.
The K-12 Education Credit, on the other hand, has some income restrictions. It's straight dollars off your tax liability.
Household income needs to be around $76,000 per year, give or take, depending on family size. Through this plan, you can get 75 cents for each dollar spent on supplies.
Last year, the Department of Revenue said more than 1,700 families received an average credit of $280 with the K-12 Education credit.
The definition of school supplies, in regard to these tax benefits, not only constitutes items like pencils, notebooks and calculators, but also things like computer hardware and software, music lessons, dance lessons and tutoring.
"Budgets are always tight and any little bit that you can help, especially when you have school supplies to purchase for your kids, any little tax help is going to be a big benefit," said Marquardt.
You can read more at the department of revenue site here.
