Schedule M1ed - K-12 Education Credit - 2017 (Page 2 of 2) in pdf

2017 Schedule M1ED Instructions

• contributions made to a dependent care ac-

• a dependent’s income, including Social Secu-

Am I eligible?

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

rity

You may be eligible for this credit if you paid

medical expense account

• any state income tax refunds not included on

education related expenses for a qualifying

• nontaxable employee transit and parking

line 1

child in grades Kindergarten through 12 (K-

expenses

• the dollar value of food, clothing, food

12) .

• veterans benefits

stamps and medical supplies received from

What is a Qualifying Child?

• nontaxable scholarships, fellowships, grants

government agencies

For this credit, a qualifying child must meet

for education, including those from foreign

• payments from life insurance policies

all of these conditions:

sources, and tuition waivers or reductions

• payments by someone else for your care by a

• is your child, descendent, sibling, niece, or

• nontaxable pension and annuity payments,

nurse, nursing home or hospital

nephew

including disability payments (Do not

• fuel assistance payments

• is enrolled in a grade K-12

include distributions from a Roth IRA or any

• IRA rollovers

• lived with you more than half the year

pension or annuity that you funded exclu-

• gifts and inheritances

• is not claimed as a qualifying child by any

sively, for which your contributions could

• nontaxable Holocaust settlement payments

other person

not be taken as a federal tax deduction .)

Line 6

What are Education Related Expenses?

• federally nontaxed interest and mutual fund

The household income limit is based on the

Education related expenses include the

dividends

number of qualifying children you have in

amounts paid for the purchase of required

• income excluded by a tax treaty

grades K–12 .

educational material for use during the regular

• rent reduction received for being a caretaker

If your total number

your household

school day, fees for after-school enrichment

• military or clergy housing allowance

of qualifying children

income must be

programs, and tutoring by a qualified instruc-

• nontaxable military earned income, such as

in K-12 is:

less than:

tor . See Income Tax Fact Sheet #8, K–12

combat pay

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

Education Subtraction and Credit, for more

• strike benefits

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

information .

• the gain on the sale of your home excluded

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

Some expenses that cannot be used for the

from federal income

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

credit may be used for the K-12 Education

• debt forgiveness income not included in

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

Subtraction (line 19 of Schedule M1M) .

federal adjusted gross income

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

Do I need proof?

Also include on line 5 the following losses

for each additional qualifying child.

Yes . Save a detailed record of your payments

and deductions to the extent they reduced

If your household income is more than the

including canceled checks, invoices, and

federal adjusted gross income:

limits shown, you do not qualify for the credit .

itemized receipts for all qualified expenses.

• tuition and fees deduction

However, you may qualify for a subtraction .

We may ask you to show these records if we

• educator expenses deduction

Line 17

have questions .

• health savings account, Archer MSA and

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

domestic production activities deductions

Is there a penalty for fraudulently claiming a

Worksheet for Line 17 .

• capital loss carryforward

refund?

• net operating loss carryforward/carryback

Line 19

Yes. If you file a return that fraudulently

• current year passive activity losses, includ-

If your Minnesota gross income is below the

claims a credit, you will be assessed a pen-

ing rental losses in excess of current year

alty equal to 50 percent of the fraudulently

filing requirement and you’re filing Form M1

passive activity income

claimed credit .

to claim this credit, you should have entered

• prior year passive activity loss carryforward

zero on line 23 of Schedule M1NR . How-

Line Instructions

claimed in 2017 for federal purposes

ever, to correctly determine this credit, you

Round amounts to the nearest whole dollar.

must first fully complete Schedule M1NR (do

Do not include on line 5:

Line 1

not skip lines 12-22) to determine what the

• Minnesota property tax refunds

Enter your federal adjusted gross income from

amounts would have been, and then follow the

• child support payments

your 2017 federal return . If the amount is

Worksheet for Line 19 .

less than zero, enter the negative number . Put

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

parentheses around a negative number .

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

If you did not file a 2017 federal return, obtain

a federal return and instructions to determine

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

$33,500

what your federal adjusted gross income

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

would have been .

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

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

Line 5

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

Enter the total nontaxable income you re-

ceived in 2017 that is not included on lines 1

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

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

Enter the step 6 result on line 17 .

line 5 .

Worksheet for Line 19

Common examples include:

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

• payments received under the state Medicaid

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

Home & Community-Based Services Waiver

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

(Medicaid Waiver)

• employer paid education or adoption ex-

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

penses

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

• workers compensation benefits

enter 1 .0 . Enter result on the space provided on line 19 of Schedule M1ED . .

• your contributions to an employee elective

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

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

Enter the result from step 6 on line 19 of Schedule M1ED and on line 3 of Schedule M1REF

deferred compensation or SIMPLE/SEP plan

Schedule M1ed - K-12 Education Credit - 2017 Page 2

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