Did you know that even if you aren’t otherwise required to file a Minnesota Income Tax return, you can (and should!) still file to claim valuable Minnesota tax benefits?

Minnesota has several tax credits and relief programs that may be able to help put more money in your pocket, just by filing your taxes.

Filing your 2024 taxes is a crucial and necessary step in managing your personal finances and ensuring that you maximize the potential benefits you may be entitled to.

Many taxpayers may qualify for various significant tax credits, several of which are refundable and can provide extra financial relief. These credits can not only reduce your overall tax bill but also potentially provide you with a direct cash refund, effectively putting more money back into your pocket.

By taking a few minutes during tax season to review your eligibility for these available credits, you can take full advantage of the resources at your disposal to enhance your overall financial well-being.

Learn more about several important tax credits and resources for getting help with filing your taxes below.

MINNESOTA TAX CREDITS AND TAX RELIEF PROGRAMS

When filing your 2024 taxes, it is essential to assess your eligibility for various tax credits and relief options available in Minnesota. Many of these credits are designed to assist low and moderate-income taxpayers, and their requirements may differ significantly.

If you are using tax software for filing, ensure it performs a thorough check for your eligibility regarding these credits. In cases where you engage a tax preparer, we suggest you explicitly ask them to verify your eligibility for such tax credits.

Need help filing your taxes? Scroll below to find links to resources for free and low-cost tax preparation.

Minnesota continues to explore ways to enhance the financial situation of its residents through these tax relief initiatives. Keeping informed about available options can help increase your tax refund or lower your tax liability, effectively putting more money back into your pockets.

  • Calling all parents of K-12 students!

    📚✏️The Minnesota Department of Revenue offers two valuable tax benefits for parents who purchase school supplies or pay for activities for their K-12 students: the K-12 Education Credit and Subtraction.

    These benefits can reduce parents’ taxes to increase their refund, but is only available for those who keep their receipts. Purchases for most school supplies, field trips, and musical instruments for school band are eligible. Most Minnesota parents qualify for the K-12 subtraction, which reduces their taxable income.

    Parents under certain income limits ($70,000 AGI for most households) may also qualify for the K-12 credit, which can refund up to 75% of their costs for supplies and eligible activities– even for parents who do not owe any taxes. (Note:This is the tax credit that MAA families use to repay their loans).

    To qualify for either program, you must:

    Note: You may not use the same qualified education expenses to claim both the subtraction and the credit.

    Learn more: https://www.revenue.state.mn.us/k-12-education-subtraction-and-credit

  • The Minnesota Working Family Credit 👪💻 is a refundable credit for working individuals whose income is below a certain level. It is similar to the Federal Earned Income Tax Credit (EITC). This tax credit helps low-to moderal-income workers and families get a tax break, and maybe increase their tax refund.

    You may claim the Earned Income Credit if your income is low- to moderate. The amount of your credit may change if you have children, dependents, are disabled or meet other criteria.

    For details and to see if you qualify, visit: https://www.revenue.state.mn.us/working-family-credit

  • The Minnesota Child Tax Credit (CTC)👨🏾‍👩🏾‍👦🏾‍👧🏾 is a refundable credit equal to $1,750 per child under 18, with no cap on the number of children.

    Starting in tax year 2024, there is also a NEW! Advance payments option: You can choose to receive part of your Child Tax Credit for the next year in three advance payments before you file your next income tax return.

    Your choice does not carry over to future years. Each year, you must indicate on your income tax return if you want to receive advance payments of the Child Tax Credit.

    If you choose to receive advance payments on your 2024 income tax return, you will receive:

    • Your full Child Tax Credit for 2024

    • Part of your 2025 Child Tax Credit divided into three equal payments in the second half of 2025

    • The remaining part of your 2025 Child Tax Credit when you file your 2025 income tax return

    If you choose not to receive advance payments on your 2024 income tax return, you will receive:

    • Your full Child Tax Credit for 2024

    • Your full 2025 Child Tax Credit when you file your 2025 income tax return

    If you owe any other Minnesota tax or government debts, we may apply your advance payments of the Child Tax Credit to the amount you owe. For more information, see Offsets.

    For additional details, visit: https://www.revenue.state.mn.us/advance-payments-child-tax-credit

  • Claim the Renter’s Credit on your Minnesota Individual Income Tax return (Form M1). 🏡💸 Since you claim it with your M1, you no longer need to wait for a separate refund later in the year! The amount you are eligible for depends on your specific filing situation. The maximum credit is $2,640.

    In order to qualify, all of these must be true:

    To qualify, all of these must be true:

    • You have a valid Social Security Number or Individual Taxpayer Identification Number

    • You must be a full year or part year Minnesota resident

    • You lived in and paid rent on a Minnesota building where the owner was assessed property tax or made payments in lieu of property tax

    • Your household income is below $75,390 (see below)

    • You cannot be claimed as a dependent on someone else’s tax return

    In order to claim this credit, you will need to provide your Certificate of Rent Paid. Be sure to ask your landlord or management company for this form if they haven’t already sent it to you.

    Learn more at https://www.revenue.state.mn.us/renters-credit

Feeling confused or overwhelmed about filing taxes? Have questions?

You’re not alone.

As tax season approaches, many individuals may find themselves feeling overwhelmed by the complexities of filing their taxes.

When seeking assistance, consider reaching out to local tax preparation services, community organizations, or even family and friends who may have experience in tax filing. Be clear about your specific needs and any concerns you have. You can also explore online resources and tutorials that guide you through the process. Taking the initiative to ask for help not only simplifies the experience but also ensures that you accurately navigate the requirements, potentially maximizing your refund or minimizing your liabilities.

We’ve done some of the hard work for you by gathering a list of resources for you to explore below.

Live in the Metro Area?

Prepare + Prosper provides free tax preparation assistance to families living in the Minneapolis-St. Paul metro area. Make an appointment by calling 651-287-0187 or by making an appointment online at https://prepareandprosper.org/online-screener/

These services are available to families whose household income in 2024 is $70,000 or less per year. If you’re filing as a single, the income limit is $40,000 or less per year.

Prepare + Prosper isn’t able to do your taxes if you have income from driving a cab, rental income, or filed bankruptcy in the tax year you wish to file. There are also other, less common situations that Prepare + Prosper is also unable to serve. If you are unsure whether Prepare + Prosper can do your taxes, please give them a call at 651-287-0187.

Prepare + Prosper’s appointments fill up fast, but don’t be deterred if you don’t get an appointment right away. Check back on the dates available on their website. You can also take charge of your taxes and try using the P+P DIY Program. If you made less than $84,000 you can qualify to their completely free tax software with support from their volunteers. Request their DIY resources here.

Not in the Metro Area, or looking for other options?

You may qualify for free tax return preparation through Volunteer Income Tax Assistance (VITA) or AARP Tax-Aide. These programs help prepare federal and state income tax returns.

You can generally get help at a VITA site if any of these apply:

  • You are age 60 or older

  • You are a person with a disability

  • You speak limited or no English

  • Your annual income is less than $67,000

AARP Tax-Aide sites do not have income or age restrictions. All sites only prepare basic returns (IRS website). For help with complicated returns, consult a professional preparer.

Visit https://www.revenue.state.mn.us/free-tax-preparation-sites to find an interactive map of free tax preparation sites across the state. You can also search by county, zip code, and available languages!

Additional Resources

  • MyFreeTaxes – Online free federal and state tax filing for those earning $73,000 or less, powered by United Way: https://www.myfreetaxes.com

Services Are Optional

While these services are being made available to you, the use of these tax preparation services is optional and is not required as part of your participation in MAA or any Youthprise programs. You may choose to prepare your taxes yourself or with the assistance of another certified tax preparer.

MAA Not Responsible for the Services Provided by Tax Preparers

MAA cannot make any guarantees as to the accuracy, completeness, reliability, suitability, or quality of the products or services offered by any of these tax preparation services. Any reliance on these tax preparation services is strictly at your own risk. MAA is not liable for any loss or damage from utilizing the products or services of these tax preparation services.