Summer vacation is nearing an end and many parents are already bracing for another round of back-to-school shopping. I want to remind parents that some school-related purchases they make before the end of the year may be eligible for state tax credits or tax subtractions on their 2003 Minnesota income tax forms. So save your receipts!Under Minnesota's education tax credit/subtraction program, families with children in grades K-12 and with incomes under $37,500 are eligible for a tax credit of up to $1,000 per child and up to $2,000 per family. Up to 75 percent of the money you spend on eligible purchases will be refunded to you when you file your taxes. Families can use tax credits for tutoring, enrichment programs, textbooks, instructional materials and expenses associated with individual schools, and home computer hardware and educational software up to $200. As of 2001, the credit is also applicable to the purchase of a musical instrument, calculator or other life-long piece of equipment that your child uses at school. Not covered is a tuition expense at a private or parochial school.All families with children in K-12 school, regardless of income, can claim state tax subtractions for the same education-related expenses listed above, including tuition. A subtraction lowers a family's taxable income. Subtraction limits are $1,625 for a child in kindergarten through 6th grade and $2,500 for a child in grades 7 through 12. What many taxpayers don't realize is that you don't have to itemize your federal taxes to claim the subtractions. A House staffer who took a tax preparation course last year told me that this is one of the most overlooked and underutilized Minnesota tax breaks. Any family filing a Minnesota income tax form can take advantage of these education-related tax reductions. For more information about education tax credits and subtractions, you can check with the Minnesota Department of Revenue online at www.taxes.state.mn.us.What's on your mind? Constituents in District 22A in Pipestone, Rock, Nobles, and Murray counties can contact me at 515 State Office Building, St. Paul, MN 55155, call me at (651) 296-5505, or e-mail me at rep.doug.magnus@house.mn.Doug MagnusState Representative District 22A
