As summer winds down and families shift into “back-to-school” mode, the costs of preparing students for the year ahead can add up quickly. From technology and supplies to tuition and extracurriculars, parents often wonder: Can any of these expenses be tax-deductible?

While most day-to-day school costs are considered personal expenses and not deductible, there are some important tax credits, deductions, and savings strategies that families should keep in mind.

K–12 Education Expenses

School Supplies & Clothing: Items like notebooks, pencils, and clothes are generally not tax-deductible. However, if your child’s school requires specific technology (like a laptop) and you also use it for business, a portion may qualify for a business deduction.

Minnesota-Specific Credits: For Minnesota residents, the state offers both a K–12 Education Credit (income-based) and a K–12 Education Subtraction (available to many families regardless of income). These can help offset costs for tutoring, textbooks, computers, and even music lessons.

College Savings Benefits

529 Plans: Contributions to 529 plans aren’t deductible on your federal tax return, but earnings grow tax-free if used for qualified education expenses. Minnesota also offers a state tax deduction or credit for contributions.

Coverdell Education Savings Accounts: Though contribution limits are smaller, these accounts also allow tax-free growth for qualified education costs.

Higher Education Tax Credits

If you have a student entering college, keep these in mind:

American Opportunity Tax Credit (AOTC): Worth up to $2,500 per student per year for qualified tuition, fees, and required materials during the first four years of college.

Lifetime Learning Credit (LLC): Up to $2,000 per return, available for undergraduate, graduate, and professional courses. This credit can be especially valuable for part-time students or continuing education.

Dependent Care & After-School Programs

Child and Dependent Care Credit: If you pay for after-school programs or care for children under 13 so you can work, a portion of those costs may qualify for this federal credit.

Other Considerations

Scholarships & Grants: Generally tax-free if used for tuition and required fees, but amounts used for room, board, or travel may be taxable.

Student Loan Interest Deduction: For parents or students paying back loans, up to $2,500 of interest may be deductible annually, depending on income.

While not every back-to-school purchase reduces your tax bill, there are meaningful credits, deductions, and state-specific programs that can ease the financial burden. Each family’s situation is unique, so planning ahead with your SDK CPA can ensure you’re maximizing available opportunities.

Extra Tip: Save your receipts for school-related purchases—especially those for tutoring, textbooks, or technology—since they may qualify under Minnesota’s education credit or subtraction.