PHONE TIP CAN BACK UP SCHOOL SUPPLIES DEDUCTION

Parents, that smartphone you’re carrying can do more for school shopping than reach the children at the other end of the discount store. It could be a convenient way to prove a tax break.

Many Minnesota families with children attending grade schools, high schools and home schools can subtract costs of school supplies and other expenses from incomes on state tax returns. Even better, some families with limited incomes can qualify for tax credits, the most powerful breaks available. Credits offset state taxes on a dollar-for-dollar basis.

While stocking up on pens, notebooks, erasers, calculators, etc., this month, try this tip:

o After check-out – perhaps in the car between stores – take photos of  those itemized receipts with your cell phone.
o Give each picture a name to describe the purchase, such as “2015 school supplies John.”
o Place the photo in a folder in the phone’s memory, or, better, email it to yourself for saving with other tax notes. You’ll have it when you need it next April.

That little click of the phone’s camera could have a significant effect. The Minnesota subtraction can lower income on your 2015 tax return as much as $1,625 for grade school students and $2,500 for high schoolers.

How do you know which expenses will qualify and which won’t? Minnesota’s Department of Revenue offers two fact sheets to help with those details. Look online for Income Tax Fact Sheet 8, called “K-12 Education Credit and Subtraction.” Eligible expenses for home schooling are spelled out in Income Tax Fact Sheet 8a.

In case you’re wondering, that handy smartphone can help bag a tax break for education, but it can’t be one. “Cell phones” is the first item on Minnesota Revenue’s do-not-include list in the fact sheet about the K-12 deductions and credits.