Fillable Schedule M1ed (Form K-12) -Education Credit

2014 Schedule M1ED Instructions

Who is Eligible?

Line 6

• income excluded by a tax treaty

You may be able to receive a credit if you paid

Th e household income limit is based on the

• rent reduction received for being a caretaker

certain types of education-related expenses in

number of qualifying children you have in

• military or clergy housing allowance

2014 for qualifying children in grades kinder-

• nontaxable military earned income, such as

grades K–12.

garten through 12 (K–12). Read the eligibility

combat pay

If your total number

your household

requirements in the Form M1 instructions to

• strike benefi ts

of qualifying children

income must be

determine if you qualify.

• the gain on the sale of your home excluded

in K-12 is:

less than:

from federal income

Expenses that cannot be used for the credit

1 or 2 . . . . . . . . . . . . . . . $37,500

• debt forgiveness income not included in

may be used for the K-12 Education Subtrac-

3 . . . . . . . . . . . . . . . . . . $39,500

federal adjusted gross income

tion (line 17 of Schedule M1M).

4 . . . . . . . . . . . . . . . . . . $41,500

5 . . . . . . . . . . . . . . . . . . . $43,500

Also include on line 5 the following losses and

Penalty for Fraudulently Claiming a Credit

6 or more . . . . . . . . . . .

deductions to the extent they reduced federal

If you fi le a return that fraudulently claims a

adjusted gross income:

* More than 5 children: $43,500 plus $2,000 for

credit, you will be assessed a penalty equal to

each additional qualifying child.

50 percent of the fraudulently claimed credit.

• tuition and fees deduction

• educator expenses deduction

You Must Have Proof

If your household income is more than the

• health savings account, Archer MSA and

limits shown, you do not qualify for the credit.

Save records (such as itemized cash register

domestic production activities deductions

However, you may qualify for a subtraction.

receipts and canceled checks) of all your educa-

• capital loss carryforward

tion expenses. You may be asked to show such

Line 17

• net operating loss carryforward/carryback

records if there is any question concerning

Th e maximum credit you may claim is based

• the amount of a passive activity loss that is

your education credit.

on household income and the number of

not disallowed as a result of Internal Revenue

Line Instructions

qualifying children you have in grades K–12.

Code section 469, paragraph (i) or (m)

If line 6 is more than $33,500, complete the

Round amounts to the nearest whole dollar.

• prior year passive activity loss carryforward

Worksheet for Line 17 below.

claimed in 2014 for federal purposes

Line 1

Do not include on line 5:

Line 19

Enter your federal adjusted gross income from

your 2014 federal return. If the amount is a net

• Minnesota property tax refunds

If your Minnesota gross income is below the

loss (a negative amount), enter the negative

• child support payments

fi ling requirement and you’re fi ling Form M1

number. Put parentheses around a negative

• a dependent’s income, including Social Security

to claim this credit, you should have entered

number.

• any state income tax refunds not included on

zero on line 23 of Schedule M1NR. However,

line 1

to correctly determine this credit, you must

If you did not fi le a 2014 federal return, obtain

• the dollar value of food, clothing, food

fi rst fully complete Schedule M1NR to deter-

a federal return and instructions to determine

stamps and medical supplies received from

mine what the amounts would have been, and

what your federal adjusted gross income

government agencies

then follow the Worksheet for Line 19 below.

would have been.

• payments from life insurance policies

Line 5

• payments by someone else for your care by a

Enter the total nontaxable income you re-

nurse, nursing home or hospital

ceived in 2014 that is not included on lines 1

• fuel assistance payments

through 4. Enter the type(s) of income below

• IRA rollovers

line 5.

• gift s and inheritances

• nontaxable Holocaust settlement payments

Common examples include:

• employer paid education or adoption ex-

penses

Worksheet for Line 17 (If Line 6 is More Than $33,500)

• workers’ compensation benefi ts

• your contributions to an employee elective

1 Multiply the number of qualifying children in grades K–12 by $1,000 . . . . . . . .

deferral plan, such as a 401(k), 403(b), 457

2 Line 6 of Schedule M1ED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$33,500

deferred compensation or SIMPLE/SEP plan

3 Income limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• contributions made to a dependent care ac-

4 Subtract step 3 from step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

count (as shown on your W-2 form) and/or

5 Multiply step 4 by .25 if you have only one qualifying child, or .50 if

medical expense account

two or more qualifying children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• nontaxable employee transit and parking

6 Subtract step 5 from step 1 (if zero or less, stop here; you don’t qualify) . . . . . . . .

expenses

Enter the step 6 result on line 17.

• veterans’ benefi ts

• nontaxable scholarships, fellowships, grants

for education, including those from foreign

Worksheet for Line 19

sources, and tuition waivers or reductions

1 Line 11, column B, of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• nontaxable pension and annuity payments,

2 Line 22, column B, of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

including disability payments (Do not

3 Subtract step 2 from step 1 (if zero or less, stop here; you don’t qualify) . . . . . . .

include distributions from a Roth IRA or any

4 Line 24 of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

pension or annuity that you funded exclu-

5 Divide step 3 by step 4 (carry to fi ve decimal places). If step 3 is more than step 4,

sively, for which your contributions could

enter 1.0. Enter result on the space provided on line 19 of Schedule M1ED . . .

not be taken as a federal tax deduction.)

• amount reported on line 1 of Schedule M1LS

6 Multiply step 5 by line 18 of Schedule M1ED . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• federally nontaxed interest and mutual fund

Enter the result from step 6 on line 19 of Schedule M1ED and on line 26 of Form M1.

dividends

Schedule M1ed (Form K-12) -Education Credit - 2014 Page 2

Related Articles

Related forms

Related Categories