February 21, 2003 -- NEWS RELEASE -- State Representative Al Juhnke
JUHNKE REMINDS PARENTS TO CLAIM EDUCATION TAX BREAKS
With income-tax filing season under way, Representative Al Juhnke is reminding parents that Minnesota provides a pair of unique tax breaks to help reduce the cost of educational expenses for their children.
"People at all income levels, and with children in public, private or home schools can take advantage of one or both of these education-related tax breaks," Juhnke said.
In all cases, documentation of expenses is required and taxpayers will need to file the "long" M-1 income tax return form. There are two separate but related tax breaks, depending on your
income.
* The Education CREDIT, which returns to you 75 cents for every dollar spent for a qualifying educational expense in 2002. The credit reduces the amount of tax you owe, or can increase your refund. This is available to parents with a household income of less than $37,500. If your household income is $33,500 or less, you can claim up to $1,000 per child or $2,000 per family. The credit is reduced as your income approaches $37,500.
* The Education SUBTRACTION, which reduces your taxable income (the income on which your tax is calculated) on a dollar-for-dollar basis. This is available to all parents, regardless of income. The subtraction is capped at $1,625 per child in grades K-6, or $2,500 per child in grades 7-12.
Expenses that qualify for either the subtraction or the credit include required materials, such as pens, pencils, paper, notebooks and rulers, used during the regular school day for subjects normally taught in K-12 public schools; the purchase or rental of equipment such as musical instruments and calculators; computer hardware and educational software ($200 limit); and fees paid to others (not a relative) for transporting your child to and from school. In addition, private school tuition or tuition paid for college courses that satisfy high school graduation requirements can qualify for the subtraction, but not the credit.
For more information, call the Revenue Department at (651) 296-3781. Due to budget cuts, call center hours are limited: 7:30 a.m. to 5 p.m. on Monday; and 7:30 a.m. to noon on Tuesday through Thursday.
On the internet, go to www.taxes.state.mn.us/individ/factshts/individ.html.
