Minnesota reminds parents to save back-to-school receipts for potential tax benefits

HOPKINS, Minn. (FOX 9) - August means it's almost time for kids to head back to class and things are already in full swing at Kiddywampus in downtown Hopkins. 

"The stuff that is kind of the currency on the school bus...you would find that with us!" said founder and CEO Amy Saldanha. 

This year, parents are paying extra close attention to their pocketbooks. 

"I think when parents are going to shop for back to school, it's costing more this year due to inflation," said Saldanha. 

Before you head out to pick up everything your kids need for the upcoming school year, the Minnesota Department of Revenue is reminding parents about two programs that can reduce the tax bill they pay and could deliver a bigger refund- if they hang on to their receipts. 

The refundable K-12 education credit has income limits of under $37,500 for households with 1-2 kids and under $39,500 for households with 3 kids. The K-12 education subtraction does not. 

According to the Minnesota Department of Revenue, qualifying purchases must be for educational services or required materials, like: 

• Paper
• Pens and notebooks
• Textbooks
• Rental or purchases of educational equipment such as musical instruments
• Computer hardware (hotspots, modems, and routers) and educational software (up to $200 for the subtraction and $200 for the credit) *
• After-school tutoring and educational summer camps taught by a qualified instructor

Your child must also be in kindergarten through 12th grade at a public, private or home school. 

According to the Minnesota Department of Revenue, more than 19,000 families received the K-12 Education Credit and saved an average of $260 last year. Nearly 130,000 families received the K-12 Education Subtraction with an average subtraction of $1,200. 

For more information about both programs, visit: https://www.revenue.state.mn.us/k-12-education-subtraction-and-credit