Minnesota's K–12 Education Credit and Subtraction for Homeschool Families, in Plain English

By My Learning Source · November 9, 2026 · Scholarships, Guides

Minnesota doesn't hand homeschool families money up front. There's no education savings account, no voucher and no state account you spend from. What Minnesota does have is two income tax benefits that give some of your homeschool spending back when you file: the K–12 Education Credit and the K–12 Education Subtraction. They've been around for years, a lot of homeschool families don't use them, and the rules are simple once somebody lays them out. That's what this is. Our Minnesota Homeschool Options guide has every official link in one place.

Yes, homeschoolers qualify

This is the first question, so let's settle it. The Minnesota Department of Revenue's Income Tax Fact Sheet 8 says that if your child is in kindergarten through 12th grade, "it does not matter if they are attending a public, private, parochial, or home school." The condition: as a home school, you must report to your local public school district each year and meet the reporting requirements of Minnesota's compulsory attendance laws. In practice that means the reports you send your resident district's superintendent under Minn. Stat. 120A.24 — the initial report, then a letter of intent to continue by October 1 each year. If you're doing those, you're in.

The credit: money back, even if you owe no tax

The K–12 Education Credit (Minn. Stat. 290.0674) equals 75% of what you paid for qualifying education expenses for a child in grades K–12, up to

,500 per child. It's refundable. If the credit is bigger than your Minnesota income tax, Revenue sends you the difference. That makes it the more valuable of the two benefits for families who qualify.

The catch is an income limit, measured by adjusted gross income, and you can't claim it if you're married filing separately. Here are the numbers, by tax year:

Tax year 2025 (the return you filed in 2026): the full
,500-per-child maximum applies with adjusted gross income of $75,820 or less. Above that it shrinks, and you don't qualify at $81,820 or more with one or two children, $84,820 with three, or $87,820 plus $3,000 for each additional child.
Tax year 2026 (expenses you pay this year, claimed on the return you file in 2027): Revenue's inflation-adjusted phase-out threshold is $77,550, and income must be less than $83,550 with one or two children, $86,550 with three, or $89,550 plus $3,000 for each additional child.

The subtraction: for everyone else, too

The K–12 Education Subtraction (Minn. Stat. 290.0132, subd. 4) has no income limit and works with any filing status. Instead of a refund, you subtract qualifying expenses from your taxable income, up to

,625 for each child in kindergarten through 6th grade and

,500 for each child in 7th through 12th grade. There's no family maximum, only a per-child maximum. Because it lowers taxable income rather than paying you directly, what it's worth depends on your tax bracket. It's smaller than the credit dollar for dollar, but it's there for every family, including those over the credit's income limit.

What they pay for

Revenue's Fact Sheet 8a on home school expenses is the list to keep handy. In short:

Counts: nonreligious textbooks, reading books, academic books and teacher's editions; paper, pens, art and shop supplies; buying or renting equipment such as musical instruments and calculators; testing fees for grade advancement; tutoring, music lessons and academic enrichment from a qualified instructor.
Counts, with a limit: home computer hardware and educational software, up to

00 per family for the credit and

00 for the subtraction.

Doesn't count: internet service, memberships (museums, zoos, the YMCA), correspondence school fees, desks and whiteboards, encyclopedias, PSAT, SAT or ACT fees, seminars for the parent, religious instruction, and instruction by the child's parent, grandparent or sibling.

That last one surprises people. You can't count your own teaching time. The credit and subtraction cover what you pay others and what you buy.

How the two fit together

You can't use the same expense for both. Revenue says to figure the credit first, then use any qualifying expenses the credit's limits left over for the subtraction. One rule trips families up: the 25% of expenses the credit doesn't cover can't be moved to the subtraction. Spend

,000 on curriculum for one child, qualify for the credit, and you get $750 back. The other

50 is simply done.

How you claim

There's no application, no approval and no approved-vendor list. You claim the credit on Schedule M1ED and carry it to Schedule M1REF; you claim the subtraction on Schedule M1M (line 13 on the 2025 form). You claim expenses in the year you paid them. You don't mail receipts with your return, but you must keep itemized receipts and invoices and show them if Revenue asks. And if your income is low enough that you don't normally file, you have to file to get the refundable credit.

A lot of families already use them

Revenue reported in August 2026 that, last year, more than 46,000 families received the K–12 Education Credit, for an average credit of $389, and more than 123,000 families received the subtraction, for an average of

,491. Those numbers include every kind of school, not just home schools.

One change to know

Minnesota used to let qualifying families assign their refund to a bank or nonprofit to get the money sooner. That law, Minn. Stat. 290.0679, was repealed for assignments after December 31, 2025. You now claim the credit the ordinary way, on your return.

A family running the numbers

The Lindqvists homeschool a 4th grader and an 8th grader near Brainerd and file jointly, with adjusted gross income of about $70,000 in 2025. That year they paid $900 for math, science and literature books for both kids, $600 for Tuesday-evening algebra tutoring for their older son from a tutor with a bachelor's degree, and $300 for a used laptop. On Schedule M1ED, the books and tutoring came to

,500, plus

00 of the laptop (the most the credit allows for computers), for

,700. Seventy-five percent of that is

,275 — well under their $3,000 maximum for two children, so their credit was

,275. The other

00 of the laptop went to the subtraction on Schedule M1M, under its own

00 computer limit.

(A composite example — names and details are illustrative, drawn from situations homeschool families commonly describe.)

Your checklist

File your initial report and your October 1 letter of intent with your district each year.
Keep an itemized receipt for every curriculum, supply and lesson purchase.
Check tutors' and teachers' qualifications before you pay.
Figure the credit first; send leftovers to the subtraction.
Use the tax year 2026 income limits for what you pay in 2026.
File a Minnesota return even if you owe nothing, if you qualify for the credit.

For curriculum, tutors and classes, browse our Minnesota vendor directory, and check the Minnesota Education Calendar for fairs and testing dates. A listing on My Learning Source doesn't mean a purchase qualifies — only Revenue decides that.

My Learning Source is an independent marketplace and is not affiliated with the Minnesota Department of Revenue, the Minnesota Department of Education, any Minnesota school district or the Minnesota Legislature. Tax rules, forms, line numbers and income limits change from year to year — confirm the current Revenue instructions or ask a tax professional before you file. Family examples are composites, not real individuals.

Loading the full experience… If it does not appear, this article is fully readable above.