Minnesota K-12 Education Credit and Subtraction (2026): Limits, Qualifying Expenses and Homeschool Rules
Minnesota K-12 Education Credit (75% of expenses, income limits) and Subtraction ($1,625 K-6, $2,500 7-12), homeschool expenses and the Oct. 1 report. Updated Nov 1, 2026.
Last updated: November 1, 2026. We checked the Minnesota Department of Revenue pages on the K-12 Education Subtraction and Credit and qualifying home school expenses, the 2025 Schedule M1ED and Minnesota Statutes 120A.22 and 120A.24. This is general information, not legal, tax or financial advice.
Minnesota has no voucher, education savings account or tax-credit scholarship program. What it does have is two long-running tax breaks that put money back in parents’ pockets for school costs: the K-12 Education Credit and the K-12 Education Subtraction. Both work for public, private and home school families.
This guide explains how each one works, what counts as a qualifying expense, the income limits for the credit and the reporting rules Minnesota homeschoolers need to follow.
This guide is part of our series on state education funding, which starts with the hub guide, State Education Funding Programs for Parents. If you are brand new to the idea, our step-by-step guide to starting homeschooling covers the basics that apply in every state.
Quick answer: Minnesota offers two tax benefits for K-12 costs. The refundable K-12 Education Credit equals 75% of qualifying expenses, up to the maximum, for families under the income limit (for 2025 returns, AGI under $81,820 with one or two qualifying children). The K-12 Education Subtraction has no income limit and lets you subtract up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12, and it is the only one that covers private school tuition. Homeschool families can claim both for qualifying expenses. To homeschool, report to your district superintendent by October 1, then file a letter of intent to continue each year by October 1.
Minnesota’s Programs at a Glance
| Program | Type | Who can use it | Key limits |
|---|---|---|---|
| K-12 Education Credit | Refundable state income tax credit | Families under the AGI limit, not married filing separately | 75% of qualifying expenses, up to the maximum on Schedule M1ED |
| K-12 Education Subtraction | Reduces taxable income | Any filing status, no income limit | Up to $1,625 per child (K-6) and $2,500 per child (7-12) |
| Federal Scholarship Tax Credit | Federal credit for donors, starting 2027 | States that opt in | Minnesota was not on the IRS list as of October 22, 2026 |
Because the credit is refundable, you can get it back as part of your refund even if you owe no Minnesota tax. The subtraction only lowers your taxable income, so it is worth less per dollar, but it covers private school tuition and has no income cap.
How the K-12 Education Credit Works
The Department of Revenue says the credit equals 75% of the qualifying expenses you paid during the year for your child’s K-12 education, up to the maximum. Under Minnesota Statutes 290.0674, the base maximum is $1,500 per qualifying child, and it phases down as income rises.
Income limits for 2025 returns
| Qualifying children in K-12 | AGI must be under |
|---|---|
| 1 or 2 | $81,820 |
| 3 | $84,820 |
| More than 3 | $87,820, plus $3,000 for each additional child |
The 2025 Schedule M1ED also has a worksheet that lowers the maximum credit once AGI is above $75,820. Married couples must file jointly to claim it. The income figures are adjusted for inflation every year, so check the new Schedule M1ED when you file for 2026.
You claim the credit on Schedule M1ED and carry it to Schedule M1REF. You cannot use the same expense for both the credit and the subtraction, and the 25% of expenses the credit does not cover cannot be moved to the subtraction.
How the K-12 Education Subtraction Works
The subtraction has no income limit. The Department of Revenue says you can subtract actual qualifying expenses up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12. A child who moved from 6th to 7th grade during the year gets the $2,500 limit. There is no family maximum.
For the subtraction, your child must have attended school in Minnesota, Iowa, North Dakota, South Dakota or Wisconsin. Private school tuition and college courses that count toward high school graduation qualify for the subtraction only.
What counts and what does not
- Qualifies for both: tutoring and academic camps led by a qualified instructor, music lessons, nonreligious textbooks and required school supplies, fees paid to others to drive your child to school, and home computer hardware and educational software (computer expenses are capped at $200 for each benefit).
- Does not qualify: sports camps and lessons, school lunches, uniforms and everyday clothing, internet service, travel and lodging for overnight trips, and instruction in religious beliefs.
- A qualified instructor has to be a licensed Minnesota teacher, be supervised by one, teach at an accredited private school, hold a bachelor’s degree or belong to the Minnesota Music Teachers Association, and cannot be the child’s parent, sibling or grandparent.
Keep itemized receipts and invoices. You do not send them with your return, but the department can ask for them.
Recent Changes and Status (as of November 2026)
- No new choice program: as of November 1, 2026, Minnesota still has no voucher, ESA or tax-credit scholarship program. The credit and subtraction are the main state help for K-12 costs.
- Credit based on AGI since 2023: the Department of Revenue notes that tax years 2022 and earlier used household income to test eligibility. Starting with 2023, the law (amended in 2023 c 64, per 290.0674) uses adjusted gross income, indexed to inflation each year.
- Federal Scholarship Tax Credit: the federal credit starts January 1, 2027, but Minnesota was not on the IRS participating states list dated October 22, 2026.
Homeschooling in Minnesota: Reporting Rules and Tax Breaks
The Department of Revenue confirms that home school families can claim both the credit and the subtraction for qualifying expenses, as long as the home school meets Minnesota’s compulsory attendance reporting rules. Its home school expenses page lists what qualifies, such as required instructional materials and curriculum for subjects normally taught in public schools.
What the law requires
- Instruction is required for children ages 7 through 17 (120A.22).
- Report the child’s name, birth date and address, the annual test you plan to use, each instructor’s name and proof of instructor qualifications to your district superintendent by October 1 of the first school year after the child turns 7, or within 15 days of withdrawing a child age 7 or older from public school (120A.24).
- Every year after that, file a letter of intent to continue by October 1, with any changes.
- Teach reading, writing, literature and fine arts; math and science; social studies; and health and physical education.
- Give a nationally norm-referenced achievement test every year. The superintendent and parent agree on the test. If the total score is at or below the 30th percentile, the parent must get an additional evaluation.
- Keep class schedules, materials and assessment records on hand.
For a state-by-state comparison, see our guide to homeschool laws by state.
Frequently Asked Questions
How much is the Minnesota K-12 Education Credit?
75% of qualifying expenses, up to $1,500 per qualifying child under the statute, reduced as AGI rises. For 2025 returns, AGI had to be under $81,820 with one or two children.
Can I deduct private school tuition in Minnesota?
Yes, through the K-12 Education Subtraction, up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12. Tuition does not qualify for the credit.
Do homeschool expenses qualify?
Yes. The Department of Revenue says home school families can claim qualifying expenses for both the credit and the subtraction if they meet Minnesota’s homeschool reporting rules.
Can I claim the credit if married filing separately?
No. You can still use the subtraction.
When is the Minnesota homeschool report due?
By October 1 of the first school year after your child turns 7 (or within 15 days of withdrawing from public school), and a letter of intent to continue by October 1 every year after that.
Sources
We checked each of these official pages on November 1, 2026. Rules and dates change, so confirm anything important with the agency before you rely on it.
- Minnesota Department of Revenue: K-12 Education Subtraction and Credit (Fact Sheet 8)
- Minnesota Department of Revenue: Qualifying Home School Expenses (Fact Sheet 8a)
- Minnesota Department of Revenue: 2025 Schedule M1ED
- Minnesota Statutes 290.0674 (education credit)
- Minnesota Statutes 120A.22 (compulsory instruction)
- Minnesota Statutes 120A.24 (reporting)
- IRS: FSTC participating states for 2027
Looking for another state? Go back to the State Education Funding Programs for Parents hub for the full list of state guides.
