Governor Walz Highlights Tax Relief for Families Ahead of New School Year

As parents begin back-to-school shopping, Governor Tim Walz today highlighted two tax relief programs that can help Minnesota families afford back-to-school expenses. Families with children in kindergarten through 12th grade may be eligible to lower their taxes or get a larger refund with the K-12 Education Subtraction and Credit.

“As a former teacher, I know that a child’s success in the classroom relies on access to the tools and materials on their supply list. But I also know the stress that can accompany back-to-school shopping,” said Governor Tim Walz. “With the K-12 Education and Subtraction Credit we’re investing in our children by ensuring no child has to forego necessary school supplies. We’re equipping our students and putting money back in pockets of hard-working Minnesotans – another step toward creating the best state in the nation for kids.”

“As a mom, I know the anxiety that accompanies the start of a new school year, and I know that getting our kids back into the classroom can be expensive. However, parents should not have to compromise when it comes to providing their children with the tools and supplies necessary to succeed,” said Lieutenant Governor Peggy Flanagan. “The K-12 Education Credit will ensure that families don’t have to decide between their child’s school supplies and life’s other expenses. This is another way that we are working to take the weight off families’ shoulders while setting kids up for future success.”

“Claiming either the K-12 Education Subtraction or the K-12 Education Credit will financially benefit Minnesota families by reducing the tax they pay and could deliver a larger refund when filing a Minnesota income tax return,” said Revenue Commissioner Paul Marquart. “By saving those receipts for qualifying education purchases, you will have the information needed at the time of filing to claim the credit or subtraction as well as the documentation necessary in case we need the information from you to verify your tax return information.”

The K-12 Education Credit allows families to claim refunds on money spent for their child’s education, including school supplies required by the school, extracurricular classes, and tutoring. The K-12 Education Subtraction allows families to reduce their tax by subtracting up to $1625 in education expenses for each child in kindergarten through 6th grade, and up to $2500 for each child in 7th through 12th grade.

Last year, more than 43,000 families received the K-12 Education Credit for an average credit of $333. Over 118,000 families received the K-12 Education Subtraction for an average subtraction of $1,395.

These back-to-school credits are in addition to Minnesota’s nation-leading Child Tax Credit that has put over $545 million back into the budgets of more than 215,000 Minnesota families this year.