Homeschool Tax Deductions and Credits in Minnesota
Yes. Two Minnesota tax breaks cover home school expenses: the K-12 Education Subtraction, up to $1,625 per child in grades K-6 and $2,500 in grades 7-12, and the refundable K-12 Education Credit, up to $1,500 per child.
How the subtraction and credit work
The Department of Revenue says a homeschooled child in kindergarten through grade 12 qualifies when the home school reports to the local district each year as compulsory attendance law requires. The subtraction has no income limit. The credit pays 75 percent of qualifying expenses; under the statute the full $1,500 per child is available at adjusted gross income of $70,000 or less, a figure adjusted each year, and the credit shrinks above it. The department's current income limit for the credit is $81,820 for one or two children and $84,820 for three.
What counts
Qualifying expenses include required materials and nonreligious books used during the normal school day, purchase or rental of equipment such as instruments and calculators, testing fees for grade advancement, and fees for tutoring, music lessons, and enrichment classes outside the school day from a qualified instructor who is not the child's parent, grandparent, or sibling. Computer hardware and educational software count up to $200 for the subtraction and $200 for the credit. Fees for instruction during the normal school day, such as a physical education class, count only for the subtraction.
Expenses that do not count include desks, whiteboards, maps, and other setup materials, reference books, religious materials, PSAT, SAT, and ACT fees, correspondence school tuition, internet service, and sports camps.
Who qualifies
Joint return if married
A married couple must file a joint return to claim the credit.
Itemized receipts
You keep itemized receipts or invoices for every expense and show them if the department asks.
No double claim
An expense used for the credit cannot also be subtracted, and the 25 percent of expenses the credit leaves uncovered cannot be subtracted either.
Applying and paying
First step
Complete Schedule M1ED for the credit first, then subtract any qualifying expenses left over, up to the per-child limits.
What you still pay
Spending above the per-child limits earns no further subtraction or credit.
When to apply or file
Claim each expense on the return for the year you paid it, even if the class or material came in a different year.
Teaching that takes the work off you
We teach every subject starting at your child's level, grade the work as it is submitted, and keep the attendance, grades, and transcript, so homeschooling asks less of your time.
$149/month per child after the trial.
Sources (5)
Confirm current tax, scholarship, and ESA rules with the program before you rely on them.