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Minnesota Homeschool Funding

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Last updated: October 8, 2025

Minnesota Homeschool Funding

Education tax credit & subtraction programs.

MN
Funding guide
State programs

Main program

Program name: K–12 Education Subtraction & K–12 Education Credit

Admin: Minnesota Department of Revenue (DOR)

Typical award

Amount: Credit: up to $1,500 per qualifying child (refundable; income-limited). Subtraction: up to $1,625 (K–6) or $2,500 (7–12) per child (no income limit).

Disbursement: State income tax credit or refund (credit) / tax subtraction (reduces taxable income). Not an ESA or upfront stipend.

Who qualifies

  • Residency: File a Minnesota individual income tax return and have a qualifying K–12 child (public, private, or qualified homeschool).
  • Age/grade: Child attended K–12 during the tax year.
  • Income/other: Credit has AGI limits (e.g., $79,760 max AGI for 1–2 qualifying children; higher with 3+). Subtraction has no income limit; some costs must be for a school in MN or a bordering state.

Timeline

  • Application opens: Each tax year when filing opens (mid-Jan.).
  • Deadline: File with your MN tax return for that year (typically mid-April).
  • Fund availability: Credit is paid as part of your refund after return is processed.

Overview

Minnesota does not offer an ESA for homeschoolers. Instead, families can reduce taxes or receive a refund for qualifying education expenses via the K–12 Education Credit (refundable, income-limited) and the K–12 Education Subtraction (no income limit; reduces taxable income). You claim these on your state income tax return by attaching the required schedules. Minnesota also offers Postsecondary Enrollment Options (PSEO) for grades 10–12 and limited shared-time access to public school classes—these provide services rather than cash to families.

Programs

K–12 Education Credit

  • Type: Refundable state income tax credit.
  • Award: Up to $1,500 per qualifying child (subject to AGI limits).
  • Uses: Qualifying K–12 education expenses you paid (see DOR list & homeschool guidance).
  • Admin: Minnesota Department of Revenue.

Official program page

K–12 Education Subtraction

  • Type: State income tax subtraction (reduces taxable income).
  • Award: Max $1,625 (K–6) or $2,500 (7–12) per child.
  • Uses: Qualifying education expenses per DOR guidance.
  • Admin: Minnesota Department of Revenue.

Official program page

Postsecondary Enrollment Options (PSEO)

  • Type: State program paying for eligible high-school students (including homeschoolers) to take college courses for dual credit.
  • Award/Uses: By law, covers tuition and certain fees; textbooks/materials handled per statute and MDE guidance. Deadlines vary by college.
  • Admin: Minnesota Department of Education (MDE) & participating colleges.

MDE PSEO overview

Shared-Time (part-time public school access)

  • Type: District-provided access to public school classes for nonpublic pupils; generates state aid to districts (no direct payment to families).
  • Admin: Local school districts; authority in Minn. Stat. § 126C.19.

Statute: Shared time aid

Eligibility

  • Residency: File a MN return and have a qualifying K–12 child in a public, private, or qualified homeschool.
  • Age/grade: Child attended K–12 during the tax year.
  • Income: Credit requires AGI under set limits (e.g., $79,760 max AGI for 1–2 qualifying children; higher with 3+). Subtraction has no income limit.
  • Other: You cannot use the same expense for both the credit and the subtraction. Keep documentation.

How to apply

  1. Save receipts and invoices for each child’s qualifying expenses (itemized).
  2. Decide which program to claim per child/expense (credit vs. subtraction). You cannot double-claim the same expense.
  3. Complete the required tax schedules:
    • Credit: Attach Schedule M1ED to your MN Form M1.
    • Subtraction: Report on Schedule M1M (Income Additions & Subtractions).
  4. E-file or mail your return by the tax filing deadline; track your refund through DOR if claiming the credit.

Go to DOR K–12 Credit & Subtraction page

Covered expenses

See DOR’s “Qualifying Expenses” and “Home School Expenses” guidance for full details and examples.

  • Textbooks & instructional materials (K–12)
  • Tutoring & academic instruction
  • Educational software / certain technology used primarily for education
  • Tests & academic assessments
  • Transportation for educational activities (per DOR rules)
  • Supplies & materials for coursework
  • Academic camps/lessons with educational objectives
  • Driver’s education (when qualifying)
  • Keep itemized receipts for all purchases
  • Note: Eligibility varies by credit vs. subtraction—review DOR lists.

Deadlines

Milestone Date Notes
Tax year expenses window Jan 1 – Dec 31 Save receipts during the calendar year.
File MN return & claim Mid-April (standard MN filing deadline) Attach Schedule M1ED (credit) or report on M1M (subtraction).
PSEO application (if using) Varies by college See each institution’s PSEO deadlines & forms.

Docs & forms

Official sources

FAQs

Can I claim both the credit and the subtraction?
No. You may not use the same expenses for both programs. Choose one per expense/child.
Do homeschool expenses qualify?
Yes—if they’re on the DOR’s list of qualifying K–12 expenses and your homeschool meets MN requirements. See DOR “Home School Expenses.”
What if I don’t owe MN income tax?
You may still receive the refundable K–12 Education Credit if you qualify based on AGI and expenses.
Are there non-tax programs I can use while homeschooling?
PSEO (grades 10–12) pays for college courses for eligible students; districts may also offer shared-time access to classes/activities (no direct family payment).

Contacts

Minnesota Dept. of Revenue — K–12 Credit/Subtraction

Phone: 651-296-3781 or 800-652-9094
Info: DOR program page
Hours: 8:00 a.m.–4:30 p.m. Mon–Fri

Minnesota Dept. of Education — PSEO

Phone: 651-582-8500
PSEO program page

Law & regulations