Spend on school supplies now, get reimbursed at tax time
ST. PAUL, MN (August 26, 2010) – AccountAbility Minnesota, a local nonprofit that provides free tax preparation and financial asset building services for low-income individuals and families, reminds back-to-school shoppers to save receipts for educational expenses – they can mean more money back at tax time.
Through Minnesota’s K-12 education credit and/or subtraction, families with students in kindergarten through 12th grade can lower their taxes paid (via the subtraction) or, if they qualify, receive a larger refund (via the credit). For the credit, families who meet income requirements and have proper documentation of purchases can receive up to 75% reimbursement on qualifying educational expenses from throughout the year – including school supplies.
The K-12 education credit is one of many credits that low-income taxpayers are due at tax time – credits that significantly boost incomes, sometimes up to 40%. AccountAbility Minnesota does all it can to ensure that taxpayers are maximizing their refunds by claiming all credits they have earned.
“Of the thousands of low-income taxpayers we serve, only a handful are aware of the credit and thus have their receipts enabling them to claim it,” said Tracy Fischman, executive director for AccountAbility Minnesota. “It’s important for families to know about this valuable credit before tax time – the opportunity to participate and plan is now.”
Summary of eligibility for the credit depends upon family size and household income:
- Families with 1-2 children in K-12 and income less than $37,500
- Families with 3 children in K-12 and income less than $39,500
- Families with 4 children in K-12 and income less than $41,500
- Families with 5 children in K-12 and income less than $43,500
- Families with more than 5 children in K-12 and income less than $43,500 plus $2,000 for every additional child in K-12
More details on eligibility requirements.
Summary of qualifying expenses include, but are not limited to:
- Pens, pencils, notebooks, folders, etc. for use during the school day
- Non-religious academic books purchased for use during the regular school day
- Qualified instructor fees for after-school and summer educational programs
- Music lessons
- Computer hardware or education software
To claim the K-12 education credit and/or subtraction, taxpayers must have documentation of the purchases such as itemized cash register receipts and invoices to prove any specific qualifying expense.
More details on qualifying expenses.
AccountAbility Minnesota assists Minnesotans to move out of poverty by providing pathways to increase income, build assets and become financially secure, and by advocating for change that breaks down barriers to financial success. They do so by providing free tax assistance to working taxpayers in the Twin Cities, and helping them to maximize the tax credit refunds they are due to significantly boost their incomes; providing technical assistance to other organizations throughout Minnesota; and partnering with financial institutions and community organizations to expand access to financial products and services that encourage low- and moderate-income taxpayers to use their cash credits to build assets and improve their long-term financial security. In 2010, AccountAbility Minnesota and its partners cross the state helped 19,300 taxpayers receive $35 million in tax refunds.
-end-
