1. Make back-to-school shopping pay your family back: Tips to track costs and get more money back at tax time

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    Did you know many school supply purchases qualify for tax savings? If you have a child in grades kindergarten (K) through 12, holding on to receipts for education could really pay you back. The K-12 Education Credit and Subtraction can increase your refund up to $1,000 by helping reimburse the costs related to education.  You may not have heard about this program or how useful it is to save receipts to claim this credit. It can really make a difference, especially when your budget is tight.  We want to help your family get the most from this valuable credit. Our guide below will help you find out if you can claim it and gives some helpful tips on easy ways to save your receipts. If you paid qualifying education expenses for your qualifying child in grades kindergarten through grade 12, and saved your itemized receipts, you may be able to claim the Minnesota K-12 Education Credit. Are you eligible? To claim the credit, you must have a qualifying child in grades K through 12. Your household income must be below $37,500 for families with one to two children. The income limit increases by $2,000 with each additional child beyond two. (Example: The income limit for a family with four qualifying children is $41,500.) What is the maximum credit? For tax year 2018, the maximum K-12 Education Credit amount is $1,000 per child. The credit amount is up to 75% of qualifying expenses.     What expenses qualify? Paper, pens, pencils, notebooks, calculators […]
  2. Get money back at tax time when you save your receipts!

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    Minnesota parents who keep their back-to-school shopping receipts can get more at tax time when they claim the Minnesota K-12 Education Credit on their return. Take it from Tameya who has a son and received 75 cents back on every dollar she spent on school supplies in 2013. For Tameya, saving her receipts went a long way. Last April, her father underwent a triple bypass surgery, suffered a major stroke, and was left paralyzed on the left side of his body. Living on her own income to support her and her son, Tameya lost her job while caring for her father and mother. Tameya felt a great deal of relief when she learned that she qualified for Prepare + Prosper’s free tax preparation services where a volunteer assisted her in claiming tax credits like the K-12 Education Credit. Here’s what you need to know to claim the K-12 Education Credit: You may claim this credit on your Minnesota income tax return for up to 75% of qualifying educational expenses which you can see below. There is a maximum household income limit: Qualifying Children Household Income Limit 1-2 $37,500 3 $39,500 4 $41,500 5 $43,500 6 or more $43,500 plus $2,000 for each additional child   Save your receipts! To claim the credit save your receives for when it’s time to file taxes and keep them somewhere you can remember to find for tax season. You must prove you paid the expenses showing each item. The credit amount is up to 75% […]
  3. Half million households in MN to expect increased property tax refunds this year. Will yours be one?

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    According to 2013 Tax Bill Improves Property Tax Refunds for Renters and Homeowners, the 2013 tax bill increases maximum refunds and lowers the threshold for qualifying for a property tax refund. The result: More than 79,000 renting households will see an average $152 increase in their Renters’ Credit refunds. More than 309,000 homeowning households will receive an average $221 increase in their refunds. Another 30,000 renting households and 112,000 homeowning households are now eligible for a property tax refund From the Minnesota Budget Bites blog. In other words, if you usually get a property tax refund, you might see a modest increase in your refund. If you didn’t qualify for a property tax refund last year, you should look at the qualification guidelines this year as you might be newly eligible. You can also talk with a tax preparation professional for more assistance.