Homeschooling gives you the freedom to shape your child's education in a way that fits their needs, interests, and pace, but it often comes with out-of-pocket costs that can add up fast. The good news? Minnesota has designed the K-12 Education Credit and K-12 Education Subtraction tax programs that lighten the load for families who are actively involved in their child’s education.
Minnesota recognizes the dedication of homeschooling families, and it's worth understanding how to make it work for you. In this guide, we’ll break down who qualifies, what counts, and how to get the most from this valuable benefit.
What is Minnesota’s K–12 Education Credit?
If you’re homeschooling in Minnesota, this section walks you through how the state’s education credit can help cover your learning costs, what it is, who can use it, what kinds of purchases count, and how to get the most from it. Let’s take a closer look.
Who qualifies for the K–12 Education Credit?
Eligibility for Minnesota’s K–12 Education Credit is based on household income and how many children you have. Here’s the general structure:
- For one or two children, families must have an adjusted gross income under $76,000.
- For each additional child, the income limit increases by $3,000.
That means a family with three kids could qualify with an income up to $79,000; with four kids, up to $82,000, and so on.
Why it matters: These thresholds open the door to many homeschool families who might otherwise feel financially stretched. If you're unsure whether you qualify, the Minnesota Department of Revenue offers a simple eligibility tool to help you estimate your credit.
What kinds of expenses count?
Minnesota’s education credit and subtraction cover a wide range of learning-related purchases, so chances are, many of the things you're already buying for homeschool or after-school enrichment may qualify. Here’s a breakdown of what’s usually covered:
- School supplies: Everyday essentials like paper, pencils, pens, notebooks, folders, rulers, those items that seem to disappear every few weeks? Save your receipts!
- Textbooks and learning materials: Books and workbooks tied to your child’s school subjects (like math, science, or English) are eligible, as long as they’re used during the regular school day.
- Tutoring help: If you’ve paid a tutor to support your child in academic subjects, those costs can count, just make sure the tutor holds a bachelor’s degree and isn’t a parent, sibling, or grandparent.
- Music lessons: Yes, music instruction from a qualified teacher (not a family member) can be part of your claim, too!
- Educational software and some tech: You can claim up to $200 per family for approved software or hardware that supports learning.
- Transportation: If you’ve paid someone else to drive your child to and from school, or to an educational field trip during school hours, those costs may also qualify.
Is Minnesota’s K–12 Education Subtraction different?
If you don’t qualify for the education credit, or even if you do, Minnesota offers another great option to help offset education costs: the K–12 Education Subtraction. This program lets families subtract certain education expenses from their taxable income, which could lower the amount of state income tax they owe.
It’s not a refund like the education credit, but it can still make a noticeable difference come tax time, especially if you’ve had significant out-of-pocket costs for learning resources, curriculum, or services.
This program is available to any Minnesota family with a qualifying child in grades K–12, regardless of how much you earn. Unlike the education credit, there’s no income cap for this benefit.
So, whether your child attends a public school, a private school, or learns at home through a homeschool program, you can claim this subtraction if you paid for qualifying educational expenses.
What are the qualifying expenses, and how much can you subtract?
The K–12 Education Subtraction covers all the same types of expenses as the credit, with a few helpful additions. That means if something qualifies for the credit, like textbooks, tutoring, or educational software, it also qualifies for the subtraction.
But the subtraction goes a bit further. Here’s what else you can include:
- Tuition for private schools.
- Tuition for college courses that satisfy high school graduation requirements.
- Tuition for summer school courses used to satisfy high school graduation requirements.
As far as amounts go, with the K–12 tax subtraction, you can subtract up to:
- $1,625 for each child in grades K–6
- $2,500 for each child in grades 7–12
How to claim your education tax benefits
If you’re exploring Minnesota’s education credit or subtraction for the first time, it might feel unclear where to begin. The good news: the process is manageable, especially if you start by getting a few key records in place:
- Keep detailed records: Save receipts, invoices, and canceled checks for all qualifying expenses.
- Complete the necessary forms:
- For the credit, fill out Schedule M1ED when filing your Minnesota income tax return.
- For the subtraction, use the worksheets provided in the Schedule M1ED Instructions.
- Submit your tax return: Ensure all forms and documentation are included to claim your credit or subtraction.
For more information and to access the necessary forms, visit the Minnesota Department of Revenue's K–12 Education Subtraction and Credit page.
Frequently asked questions (FAQs) about Minnesota K–12 Tax Credit and Subtraction
If you’re homeschooling in Minnesota or using any out-of-pocket resources to support your child’s learning, these tax benefits can offer meaningful savings. Here are some helpful answers families often seek as they get started!
When can I claim the credit or subtraction?
You’ll claim the credit or subtraction when you file your Minnesota state tax return, usually by April 15. Start tracking expenses from January 1 each year, even if you’re not sure what qualifies yet. It’s easier to sort things later if you’ve saved everything up front.
How should I track my expenses?
The state doesn’t require a specific format, but recommends saving detailed receipts that include:
- Purchase date
- Item or service
- Amount paid
- Name of the child (if applicable)
- Purpose of the expense (educational)
Keep either paper or digital copies, and make a brief note about how each item supports learning.
Can I include online classes?
Yes, as long as the class is educational and nonreligious, it likely qualifies. That includes many structured online programs like Outschool. Be sure to save your payment confirmation and class info in case you need to document how it supports your child’s learning.
What are the income limits for the credit?
The credit covers 75% of qualifying educational expenses, up to a maximum of $1,500 per child. These numbers can change slightly each year, so it’s a good idea to check the Minnesota Department of Revenue website for the latest info.
(There’s no income limit for the subtraction; just for the credit.)
What if I missed an expense or find more receipts later?
You can still claim them! Just file an amended return using Minnesota Form M1X. You have up to three years from the original tax deadline to adjust your return and get the credit you missed. Hang onto any new receipts you’re adding; they’ll need to show the date, cost, and educational purpose.
Making learning more affordable with Minnesota Tax Credits and Subtractions
Choosing the right educational path for your child is a deeply personal decision, and one that often comes with financial trade-offs. Minnesota’s K–12 Education Credit and Subtraction are designed to ease that burden by supporting families who invest in their child’s learning, whether through homeschooling, private instruction, or enrichment programs.
And if you’re looking for academically enriching classes, Outschool is here to help. Our live, interactive courses across math, science, language arts, and beyond are designed to fit your family’s schedule, style, and budget.
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