Reminder: Keep Education Receipts for Tax Credits or Subtractions

Friday, August 7th, 2009 at 6:03 am

(From Minnesota Revenue)

Saint Paul – The Minnesota Department of Revenue is reminding parents to save receipts from school supply purchases this year. Doing so could qualify parents for possible tax credits or subtractions on their 2009 state income tax returns.

There are two tax provisions that help Minnesota families pay expenses related to their child’s kindergarten through 12th grade education: the K-12 education credit and K-12 education subtraction. Both programs reduce the tax parents must pay and could provide a larger refund when filing a 2009 Minnesota Individual Income Tax Return. To qualify, parents must have purchased educational services or required materials during 2009 to assist with their child’s education and the child must be attending kindergarten through 12th grade at a public, private or home school.

“Even during these challenging economic times, school supplies are still an important necessity,” said Revenue Commissioner Ward Einess. “These tax credits and subtractions can make a big difference on a family budget.”

Generally, most expenses paid for educational instruction or materials qualify, including purchasing 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, which is refundable.

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

Stop by the Department of Revenue’s booth at the Minnesota Star Fair in the Education Building to receive envelopes for school supply receipts.

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.

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