English Composition 1
Self-paced online English Composition 1 course (ENG 101). NCCRS recommends 3 semester credits; each college decides how it applies them.
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Minnesota's K-12 education credit and subtraction for home educators
By the team. Checked 15 Nov 2026.
The short answer
Minnesota's K-12 education credit and subtraction let homeschool families claim some education costs. The subtraction is up to $1,625 per child in K-6 and $2,500 in 7-12, with no income limit. The credit is 75 percent of qualifying expenses, with income limits. Correspondence school fees do not qualify, so check each cost.
Two tax breaks, two sets of rules
The Minnesota Department of Revenue runs two related tax breaks. The subtraction lowers your taxable income: up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12, with no family-wide maximum and no income limit. The credit reduces your tax directly and can be refunded: it equals 75 percent of qualifying expenses, up to a maximum worked out on Schedule M1ED, and it has income limits.
Home-schooled children qualify for both, as long as the home school meets Minnesota's compulsory attendance reporting requirements.
Income limits for the credit
For tax year 2026, the Department of Revenue lists household income limits for the credit of $83,550 with one or two qualifying children and $86,550 with three. The subtraction has no income limit, so families above the limit can still use it.
| Qualifying children | 2026 credit income limit |
|---|---|
| 1 or 2 | $83,550 |
| 3 | $86,550 |
| Subtraction | No income limit |
What counts for home educators
The department's home school fact sheet, updated 16 December 2025, lists the main qualifying costs.
- Required instructional materials such as textbooks, paper and art supplies
- Most nonreligious books used to teach public school subjects
- Instructor fees for academic instruction outside the normal school day by a qualified instructor who is not a parent, sibling or grandparent
- Educational software and computer hardware for home use
- Tuition for college courses used to meet high school graduation requirements, for the subtraction only
What does not count
Some common costs are left out. Fees for correspondence schools do not qualify, and the fact sheet does not separately address online courses, so do not assume an online course fits. Monthly internet fees, desks and whiteboards, nonacademic programmes such as sports camps, and fees paid to a family member for instruction do not qualify either.
Where online courses stand
We cannot tell you whether a self-paced online course is a qualifying expense. It may look like a correspondence course, which the department excludes, or like instruction or educational software, which it includes. The answer depends on the facts, so ask a tax adviser in writing, or ask the Department of Revenue, before you claim it.
Whatever you claim, keep itemized receipts or invoices for every expense. You do not send them with your return, but the department can ask for them.
Planning the high school years
For 9th and 10th graders, college-level courses at home build skills before PSEO opens in 11th grade. Once your student qualifies, PSEO courses taken for high school credit carry no tuition charge to the student, which is usually better value than any tax break on a paid course.
If you want home courses to count as college credit later, ask the college in writing first. The credit reaches it via a college transcript, and TESU and UoPeople are partner colleges that consider ACE-recommended or NCCRS-recommended credit.
What to ask in writing
Before you enrol
Ask the college in writing whether named ACE-recommended or NCCRS-recommended courses, recorded via a college transcript, would count toward its credit before you rely on them, and ask a tax adviser in writing before you claim any course on Schedule M1ED.
UPI Study is not a college and is not accredited. ACE and NCCRS review our courses and recommend credit; a college decides whether to give that credit and records it on its own transcript.
ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.
Questions people ask
can homeschoolers claim the minnesota k-12 education credit
Yes, if the home school meets Minnesota's compulsory attendance reporting requirements and the household is under the income limit for the credit. For tax year 2026 the limit is $83,550 with one or two qualifying children. The subtraction has no income limit.
how much is the minnesota k-12 education subtraction
Up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12, with no family-wide maximum. It lowers your taxable income rather than your tax directly, and there is no income limit, according to the Department of Revenue.
do online homeschool courses qualify for the k-12 credit
The Department of Revenue says correspondence school fees do not qualify and does not separately address online courses. Some online costs, such as educational software, can qualify. Ask a tax adviser or the department before claiming an online course, and keep the receipt.
Courses that fit
ACE-recommended or NCCRS-recommended courses, studied online at your own pace.
US History 1
Self-paced online US History 1 course (HIST 101). NCCRS recommends 3 semester credits; each college decides how it applies them.
See the course →
Introduction to Psychology
Self-paced online Introduction to Psychology course (Psychology 110). ACE and NCCRS recommend 3 semester credits; each college decides how it applies them.
See the course →Start when you have it in writing
One price for all courses for homeschool families: start college-level work in 9th or 10th grade, before PSEO opens.
Sources
- Minnesota Department of Revenue: K-12 Education Subtraction and Credit (Fact Sheet 8) (official)Subtraction up to $1,625 per child in grades K-6 and $2,500 per child in grades 7-12; the credit is 75 percent of qualifying expenses, with income limits; home-schooled children qualify if the home school meets compulsory attendance reporting; keep itemized receipts or invoices. Checked on 15 Nov 2026.
- Minnesota Department of Revenue: Qualifying home school expenses (Fact Sheet 8a, updated 16 Dec 2025) (official)Qualifying: instructional materials, instructor fees for academic instruction outside the normal school day by a qualified instructor, educational software and hardware; tuition for college courses used to meet high school graduation requirements qualifies for the subtraction only. Not qualifying: fees for correspondence schools, internet fees, fees paid to a parent, sibling or grandparent. Checked on 15 Nov 2026.
- Minnesota Department of Revenue: press release, 20 August 2026 (official)For tax year 2026 the credit has household income limits of $83,550 for one or two qualifying children and $86,550 for three; the subtraction has no income limit. Checked on 15 Nov 2026.
- Minnesota Revisor: Minn. Stat. 124D.09, Postsecondary Enrollment Options Act (official)Subd. 4: alternative pupils include home-schooled students in grades 10-12, who register with the commissioner; a 10th grader only for a CTE course after a passing reading score. Subd. 7: notice by 30 October or 30 May. Subd. 8: participation cap by grade of first enrolment (two academic years from grade 11). Subd. 12: four semester credits equal at least one full year of high school credit. Subd. 19: no charge to the pupil for fees, textbooks or materials when taken for secondary credit. Checked on 15 Nov 2026.