What is the Education Tax Credit and Education Subtraction?
If you buy school supplies such as pencils, notebooks, and/or computers for your children, you may qualify for one or both K–12 Education Subtraction and K–12 Education Credit.
- The credit reduces your state income tax or increases your refund.
- The subtraction lets you reduce your state income tax.
Who qualifies for the credit?
To qualify for either the credit or subtraction, both must be true:
▪ You purchased educational services or materials to assist with your child’s education.
▪ Your child is attending kindergarten through 12th grade at a public, private, or home school in Minnesota.
To qualify for the credit, your income must be below a certain amount based on the number of children in your household. See the table below:
| Number of qualifying children in K-12: | Adjusted gross income must be less than: |
| 1 or 2 | $76,000 |
| 3 | $79,000 |
| More than 3 | $79,000 plus $3,000 for each additional child |
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How do I receive the benefit?
- To claim the credit, file M1ED on your tax return.
- To claim the subtraction, file M1M Income Additions and Subtractions with your tax return.
The Minnesota Department of Revenue offers free tax preparation for those who qualify. Learn more at Free Tax Preparation Sites | Minnesota Department of Revenue (state.mn.us)
If you don’t qualify for free preparation but are considering hiring a professional tax preparer to help file your tax return, the Minnesota Department of Revenue provides a helpful guide on finding one with the knowledge to prepare your returns correctly:
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