Ruud recommends keeping back-to-school receipts
Keeping school supply receipts may lead to savings when filing a 2013 Minnesota income tax return, said Sen. Carrie Ruud, R-Breezy Point.
There are two educational tax relief options — a credit and a subtraction — available to help families with students in kindergarten through 12th grade who attend public, private and home school.
The first option is a refundable K-12 education credit that reimburses Minnesota taxpayers for up to 75 percent of their school expenses. The income limit varies. For example, if there are one to two students, the household income must be less than $37,500. If there are three students, the income limit is $39,500. Four students is $41,500.
The second option is the K-12 education subtraction that reduces overall taxable income. There is no income limit.
Qualifying expenses include education services or required materials to assist with a child’s education. Examples include paper, pens, notebooks, textbooks, rental or purchases of education equipment such as musical instruments, computer hardware and educational software, after-school tutoring and educational summer camps.
Parents simply need to save their receipts from purchases and apply those expenses to their 2013 Minnesota tax return next year.
For more information on these education tax breaks, visit the Department of Revenue website at www.revenue.state.mn.us or contact the department at 651-296-3781 or 800-652-9094.