Business

Saving receipts can mean valuable tax benefits when shopping for back to school

stockvault-back-to-school111941It’s about time to start back to school shopping. This year, don’t forget to save your school supply receipts. The Minnesota Department of Revenue is reminding parents that most school supplies could qualify for valuable K-12 tax benefits on their 2015 Minnesota return.

“Each year, parents invest in their children’s education by purchasing school supplies,” said Revenue Commissioner Cynthia Bauerly. “Keeping the receipts for these purchases can help parents save when it comes time to file taxes.”

There are two tax benefits that help Minnesota families pay expenses related to their child’s education: the refundable K-12 education credit (income limits apply) and the K-12 subtraction (no income limits).

Both programs reduce the tax parents pay and could provide a larger refund when filing a 2015 Minnesota income tax return. To qualify, parents must have purchased educational services or required materials during 2015 to assist with their child’s education. The child must also be attending kindergarten through 12th grade at a public, private, or home school and meet other qualifications. Remember to save your receipts to claim the credit or subtraction.

Be sure to visit the Revenue booth at the Minnesota State Fair in the Education Building where you can get special envelopes to keep track of your school supply receipts.

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 taught by a qualified instructor.

Household Income for the K-12 Education Credit:

Number of qualifying children in K-12: Your household income must be less than:
1-2……………………………………………………….. $37,500
3………………………………………………………… $39,500
4 or more……………………………………………… add $2,000 for each additional 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 if eligible.

K-12 Education Subtraction: There are no income limits to qualify for the education subtraction. Most parents qualify for the education subtraction.

Last year, more than 53,000 families received the K-12 education credit, saving them an average of $272. Over 219,000 families received the K-12 education subtraction.

August 5, 2015
ABOUT INSIGHT NEWS
The Journal For Community News, Business and The Arts serving the African American community in Minneapolis-St.Paul. Available on news stands and online at insightnews.com.
INSIGHT NEWS

1815 Bryant Ave N, Minneapolis, MN 55411
insightnews.com
(612) 588-1313

ADVERTISING

Download our Media Kit (PDF file, requires Adobe Acrobat Reader)

Newspaper Deadlines
-Classified: Ad inquiries due one week prior to run date Wednesday
-Display: Space reservation due one week prior to run date and material due Wednesday the week prior to run date.
-Insight News print edition is published weekly on Mondays

For more information call: 612.588.1313

CONVERSATiONS W/ AL MCFARLANE