Frequently Asked Questions

What is Minnesota Afterschool Advance?

Minnesota Afterschool Advance (MAA) is a collaboration between Youthprise and Venn Foundation which aims to help eligible Minnesota families take advantage of the long-standing but underused Minnesota K-12 Education Tax Credit (METC).  METC currently offers eligible families up to $1,500 in reimbursement per eligible child per year for 75% of the cost of qualified educational enrichment services like music lessons, tutoring, drivers education, and more.

Using a formal state process called “assignment,” MAA helps participating families by offering 0%, no-fee, charitable loans for the amount of the credit to help cover service costs up front.  When families correctly file taxes the next spring, the state directly pays only the amount of the METC back into the MAA loan fund at Venn Foundation, and the dollars can be reused again for families the following year.

To learn more about the METC and formal assignment process, see the following state resources:

What educational enrichment services qualify?

The definition of what educational expenses qualify for the METC is both expansive and detailed. We invite you to review the MN Department of Revenue’s website here (click to expand the “Qualifying Expenses” and “Expense Examples” sections). You can also read the formal statute language and definitions on the website here.  Many different types of educational expenses can qualify for the METC, not just tutoring services. For example, the METC can also cover tuition for academic summer camps, music lessons, drivers education, and even up to $200 per family per year for home computer hardware and educational software, provided that all criteria are met.

In order for a family to use the assignment process to help them pay for an eligible education expense up front in advance of a future METC reimbursement, the Minnesota Department of Education (MDE) also must certify that service. The requirements of the certification process can be found in the statute (290.0679. Subdivision 2).  While MDE certification of services is not required for families using the METC by themselves, it is required for families who want to use the assignment process with a program such as Minnesota Afterschool Advance (MAA). As such, only services that have been certified by MDE as qualified for METC are eligible for families to access under MAA.


How do service providers get connected to MAA?

For its first five years in operation, from 2018 through mid-2023, before legislation updating the METC was passed into law in 2023, MAA operated statewide under an open network model.  Essentially any service provider offering any eligible service could apply to MDE to be certified for that service. Once the service was certified by MDE, the provider could then ask that its service be included on MAA’s menu of services. To have services included on MAA’s menu, MAA requires all service providers to go through a training and to sign an agreement with MAA, which included numerous ongoing commitments.  If concerns with service providers arise, MAA reviews and addresses them on a case by case basis, with various potential responses up to and including removal from the MAA service menu.

Today, MAA still operates using this same core model, but currently the focus is on serving a smaller set of communities with a menu of certified services offered by a more limited set of providers. The reason for this change is that when the METC was updated in mid-2023, the income limit for the METC increased substantially and greatly expanded the number of eligible families. This was a huge win for Minnesota families. However, MAA itself did not have enough capital to continue to meet the increased demand for its program under the original statewide open network approach.

How do families apply for MAA?

Once families learn about MAA, they complete an extensive application process and receive multiple communications from MAA before a loan is extended.  You can read more details about how families apply on the MAA website here. 

How do families select and engage with service providers?

Once an eligible family applies for and is accepted to MAA, the family is invited to review the entire MAA menu of services and to select which particular service(s) to access for their eligible children. The family then enrolls directly with that selected service provider for that selected service. Once a family enrolls their child with their selected provider, MAA pays 75% of the eligible expense of the service (the exact amount to be covered by the family’s future METC to be repaid to MAA through the assignment process) directly to the service provider.  The remaining 25% of the eligible expense is either covered up front by a discount from the service provider or else paid to the provider by either the family or a third-party scholarship.

To be clear, MAA itself does not contract with providers to deliver services to children. Instead, each family contracts with their own selected providers to deliver their own selected certified services to their eligible children. Then MAA helps each family pay for those services up front by advancing the family’s future METC on a 0%, no-fee basis, which will be repaid to MAA through the METC assignment process.

Does MAA charge families to enroll in or participate in the program?

MAA does not charge families to participate. The program offers no-interest, no-fee loans, ensuring accessibility for all eligible participants. Loan repayment is exclusively managed through the formal assignment process, and MAA does not engage in any additional collection efforts.

How many service providers has MAA worked with over time?

Since 2018, MAA has worked with nearly 100 service providers offering more than 120 MDE certified services that have supported students in over 200 cities around the state. This includes 45 tutoring services; 10 academic enrichment camps; 41 music lesson, dance, or other arts services; and 22 drivers education services. MAA has also supported hundreds of families in using the METC to cover the cost of Chromebooks for digital learning. Example service providers include MacPhail Center for Music, Sylvan Learning, Safeway Driving School, Saint Paul Public Schools, and Farmington Community Education. To see MAA’s current menu of services, visit MAA’s website here.

What kind of tax support does MAA offer families with claiming the METC?

MAA offers a wide array of resources to families to help them file their taxes and claim the METC.  Every year, MAA provides each family with a comprehensive tax preparation packet which includes detailed instructions, itemized receipts, and a list of free tax preparation resources.  For the past several years, MAA also has offered to pay for families to receive free tax preparation services from a professional firm with a Somali-speaking accountant.  When families encounter issues with their taxes, MAA only learns about them if the family proactively tells MAA, and we encourage them to do so.  If families request support, MAA staff are eager to assist families in reviewing their tax situation, troubleshooting their issues with Revenue, filing amended returns, and responding to audits. 

 

What impact can tax return audits by the Minnesota Department of Revenue (Revenue) have on the situation?

Revenue audits are a common occurrence for families who participate in MAA and claim the METC, particularly when families file an amended return to claim the METC.  Audits typically are requests from Revenue for more information from families, but what each audit specifically asks for can vary significantly from family to family.  Audits regularly ask families to provide detailed information that only service providers would normally have.  If, for whatever reason, a service provider does not provide the required information that only it has access to, then the family is unable to provide it to Revenue and the family’s METC is at risk of being denied.

An audit can take up to two months to reach a first decision.  Appeals can take up to another four months. During this time, a family’s entire tax refund is typically held back by Revenue.  The length of time involved in the audit process is another source of frustration for families who are audited.

MAA empathizes with families facing the challenges of being audited by Revenue.  Audits can be confusing and concerning for any taxpayer, and given the complexity of the METC and assignment process, it can feel particularly frustrating for MAA families, especially when language barriers exist and/or when families are unfamiliar with the tax process.  MAA is eager to offer support to any MAA family going through an audit, but the family must first make MAA aware of the audit and ask for support.  Revenue does not notify MAA directly when a family is audited.

How is MAA funded?

Youthprise and Venn Foundation work collaboratively to fundraise philanthropic support for MAA operations and for the MAA loan fund.  MAA earns no income whatsoever from the 0%, no-fee loans it extends to client families in advance of the METC.  When the state repays MAA, that money goes back into the MAA loan fund to get re-loaned to families in future years.  MAA also earns no income from working with service providers.  MAA operations are entirely donor funded.

What is the legislative history of the METC and assignment process?

The original legislation creating the METC in 1997 and the assignment process in 2001 were both led by Republicans.  Recent legislative efforts to update the METC, starting in 2019 and ultimately succeeding in 2023, have had broad bi-partisan support.