Minnesota – K–12 Education Credit
Minnesota’s K–12 Education Credit program was enacted in 1997 and launched in 1998. The individual tax credit program offers families a refundable tax credits for non-tuition educational expenses like tutoring, educational after-school programs and books. Learn more about this program, including the value of the tax credit and student eligibility on this page.
Program Fast Facts
Program Details
Minnesota’s K–12 Education Credit Participation
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Minnesota provides a tax credit covering educational expenses for students in any private or public school, including homeschooling or schools in North Dakota, South Dakota, Iowa or Wisconsin. The tax credit reduces the family’s total tax liability and covers books, tutors, academic after-school programs and other non-tuition educational expenses.
Tax Credit Value
The tax credit is worth 75 percent of the amount spent on educational expenses other than tuition. The total credit amount that a family may claim is equal to $1,000 per child in the family. The tax credit reduces the family’s total tax liability and covers books, tutors, academic after-school programs and other non-tuition educational expenses.
The refundable tax credit is phased out for taxpayers who earn more than $33,500. For families with one child, the maximum allowable credit is reduced by $1 for every $4 of income above $33,500, and the family may not claim the credit at all if its income is above $37,500. For families with two children, the maximum allowable credit is reduced by $2 for every $4 of income above $33,500, and, again, the family may not claim the credit if its income is above $37,500. For families with more than two children, the phase-out is still $2 for every $4 of income above $33,500, but the $37,500 income ceiling is raised by $2,000 for each child after the first two. For example, a family with four children may not claim the credit if its income is more than $41,500.
Student Eligibility
Parents must meet the abovementioned income restrictions to claim the credit. Also, parents must be tax filers and have proof of eligible expenses.
EdChoice Expert Feedback
Minnesota’s Education Credit is plagued by complexities that make it difficult for the average taxpayer to utilize. A more streamlined program with universal eligibility would greatly enhance this program. Although this credit covers education expenses outside tuition, for both public and private schools, those expenses are usually a fraction of what tuition costs. Purchasing power is very low. This program should boost funding by allowing private school tuition to be counted toward the credit. Moving toward a model more similar to Alabama’s refundable tax credit for educational expenses would be of great benefit to families using this program.
Rules and Regulations
- Income Limit: Conditional
- Prior Year Public School Requirement: None
- Geographic Limit: Statewide
- Enrollment Cap: None
- Individual Credit Cap: $1,000
- Testing Mandates: None
Parent Requirements:
- Must ensure filing status is not married filing separate
- May not include private school tuition as an expense
Governing Statutes
Minn. Stat. § 290.0674
Legal History
No legal challenges have been filed against the program.