5 Tax Credits to Reduce Your Taxes or Get a Bigger Refund
The Family Partnership is working with the Minnesota Department of Revenue to help spread the word about the new tax credits for individuals and families.
Even if you do not have to file a Minnesota income tax return, you can still file to get tax benefits. There are five credits you may be able to claim that may help you pay less taxes and get a bigger refund.
1. Minnesota Child Tax Credit
If you have children, this tax credit can lower the amount you owe or give you a refund.
Am I eligible for the Minnesota Child Tax Credit?
You may qualify if:
- You were a full-year or part-year resident of Minnesota in 2023
- You are not a dependent of another person
- You have one or more qualifying children as defined by the IRS
How much is it?
The maximum credit is $1,750 per child under age 18 and there is no limit on the number of children.
2. Minnesota Working Family Credit
The Minnesota Working Family Credit gives tax relief to people whose income is below a certain level. This can reduce the amount you owe in taxes or give you a bigger refund.
Am I eligible for the Working Family Credit?
You may qualify if:
- You were a full-year or part-year resident of Minnesota in 2023
- You are not a dependent of another person
- If you are married and you or your spouse are a nonresident alien, your filing status must be Married Filing Jointly
- If you have no qualifying children, you and your spouse must have resided in the U.S. for more than half of 2023
How much is it?
If your earned income is $8,750 or more, the credit depends on the number of qualifying children:
- $350 for no qualifying children
- $1,275 for one qualifying child
- $2,450 for two qualifying children
- $2,850 for three or more qualifying children
3. K-12 Education Credits
Have you bought school supplies for your kids in kindergarten through high school? Save the receipts! There are two K-12 Education Credits that can result in savings for you.
Last year, more than 17,500 families received the K-12 Education Credit and saved an average of $282. Over 138,000 families received the K-12 Education Subtraction with an average savings of $1,285.
Am I eligible for the K-12 Education Credit or Education Subtraction?
You may qualify if:
- You purchased educational services or materials to assist with your child’s education
- Your child is attending kindergarten through 12th grade at a public, private, or home school
What counts for this credit?
Here are some examples of things that count:
- School supplies (pencils, paper, calculators)
- Educational computer hardware and software
- Tutoring by a qualified instructor
- Buying or renting musical instruments used during school
Are there income limits for these credits?
- K-12 Education Credit: Your adjusted gross income must be below the levels shown here:
- 1 or 2 children, $76,000
- 3 children, $79,000
- More than 3 children, $79,000 plus $3,000 for each additional child
- K-12 Education Subtraction: There are no income limits for the education subtraction.
4. Property Tax Refunds for Homeowners
If you are a homeowner, you might qualify for a property tax refund.
Am I eligible for property tax refunds?
There are two types of property tax refunds for homeowners:
- You may qualify for the regular property tax refund if:
- You owned and lived in your home on January 2, 2024
- Your household income for 2023 was less than $135,410.
- You may qualify for the special property tax refund if the following are true:
- You owned and lived in the same home on January 2, 2023, and on January 2, 2024
- Your home’s net property tax increased by more than 12% from 2023 to 2024
- The net property tax increase was at least $100
- The increase was not because of improvements you made to the property
Unlike the regular refund, there is no income limit to claim the special refund.
You may file for the Property Tax Refund on paper or electronically by August 15. You have up to one year after the due date to file.
5. Property Tax Refund for Renters
If you are a renter and your household income is less than $73,270, you may qualify for a property tax refund for renters.
What do I need to claim the refund?
- A completed Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund.
- A copy of your Certificate of Rent Paid (CRP).
- You will receive one CRP for each unit you rented during the calendar year.
You may file for the Property Tax Refund on paper or electronically by August 15. You have up to one year after the due date to file.
You may also qualify for free tax help! Find free tax preparation information.
This information can be found in summary on our Minnesota Tax Credits page. You can also reach out to the Minnesota Department of Revenue for more information and help:
Minnesota Department of Revenue
Phone: 651-296-3781 or 1-800-652-9094
Website: Minnesota Department of Revenue
This service made available through a grant provided by the state of Minnesota.