Tax Credits

Minnesota Family Tax Credits and Refunds

Minnesota offers several tax credits and deductions to help families reduce taxes and increase refunds. Explore the programs below to see which benefits you may qualify for.

CHILD TAX CREDIT

The Minnesota Child Tax Credit provides up to $1,750 per qualifying child, with no limit on the number of children claimed.

Key Benefits

• Up to $1,750 per qualifying child
• Refundable credit (you can receive a refund even if you owe no tax)
• No limit on the number of qualifying children claimed
• Option to receive a portion of next year’s credit through advance payments

Eligibility Requirements

You may qualify if:

• You have one or more qualifying children
• Your income falls within the program limits
• You meet Minnesota residency requirements

You are not eligible if:

• You were a full-year nonresident
• The IRS restricted you from claiming the federal Earned Income Tax Credit (EITC)
• You are another person’s dependent or qualifying child

Age Requirements

• Children age 17 and younger may qualify for the Child Tax Credit.
• Children over age 17 may qualify for the Credit for Qualifying Older Children instead.

Income Phase-Out

The credit begins to phase out when income exceeds:

• $31,950 for most filers
• $37,910 for Married Filing Jointly taxpayers

Note: These thresholds assume earned income of at least $9,480. Thresholds may be slightly lower for taxpayers with less earned income.

Advance Payments

You may choose to receive part of your next year’s Child Tax Credit in three advance payments before filing your next return.

Important

If you owe other Minnesota taxes or government debts, your refund may be applied toward those balances.

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CHILD AND DEPENDENT CARE CREDIT

The Minnesota Child and Dependent Care Credit helps offset eligible child care and dependent care expenses.

Key Benefits

• Refundable credit
• Up to $600 for one qualifying dependent
• Up to $1,200 for two or more qualifying dependents

To Qualify

You must:

• Have earned income (and your spouse, if filing jointly)
• Not use the Married Filing Separately status
• Have a qualifying person who lived with you for more than half the year
• Meet the income limits above
• Have documentation for eligible care expenses

Eligible Expenses

You may claim expenses paid for:

• Child care or dependent care that allows you to work or look for work
• Household services that allow you to work or look for work

Expenses That Do Not Qualify

• Food, clothing, education, or entertainment (unless inseparable from care services)
• Expenses paid by another person or government agency

Expense Limits

• Up to $3,000 in qualifying expenses for one child
• Up to $6,000 in qualifying expenses for two or more children

Special Situations

You may still qualify if:

• You adopted or had a baby during the tax year
• You are a licensed daycare provider
• You are divorced, legally separated, or lived apart from your spouse and meet federal qualifying-person rules

How to Claim

Complete Schedule M1CD, Child and Dependent Care Credit.

K-12 EDUCATION TAX BENEFITS

Minnesota offers two programs to help families with education expenses:

1. K-12 Education Credit
2. K-12 Education Subtraction

General Eligibility

To qualify for either program, you must:

• Have a qualifying child in kindergarten through 12th grade
• Pay eligible educational expenses
• Ensure the child attends a public school, private school, or qualified homeschool

NOTE: You cannot use the same expenses for both the Credit and the Subtraction.

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K-12 EDUCATION CREDIT

The K-12 Education Credit may reduce your tax or increase your refund if your income falls below program limits.

Eligibility Requirements

• Filing status is not Married Filing Separately
• Adjusted Gross Income (AGI) is below the applicable limit

How to Claim

Complete Schedule M1ED, K-12 Education Credit.

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 K-12 EDUCATION SUBTRACTION

The K-12 Education Subtraction reduces taxable income for eligible education expenses.

Eligibility Requirements

• No income limit
• Any filing status may qualify

Child attends a school in:

How to Claim

Complete Schedule M1M, Income Additions and Subtractions.

Qualifying Child Rules

A child qualifies if:

• They attended grades K-12 during the year
• They meet the federal Earned Income Credit definition of a qualifying child

Only one taxpayer may claim expenses for the same child.

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WORKING FAMILY CREDIT

The Minnesota Working Family Credit is a refundable credit for working individuals and families with lower incomes.

Credit Amount

• Equal to 4% of earned income
• Maximum credit of $379
• Combined with the Child Tax Credit and Credit for Qualifying Older Children on Schedule M1CWFC

Eligibility Requirements

You may qualify if:

• You have earned income
• Your income falls within program limits

You are not eligible if:

• You were a full-year nonresident
• You are another person’s dependent
• The IRS restricted your federal EITC claim
• You file Married Filing Separately and have no qualifying children

Important

If you receive advance Child Tax Credit payments, you must file an income tax return the following year.

How to Claim

Complete Schedule M1CWFC, Minnesota Child and Working Family Credits.

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Need Help Determining Eligibility?

Review the eligibility requirements for each program carefully. Many Minnesota families qualify for multiple credits and deductions, which can substantially increase their refund and reduce their tax burden.

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