3 Ways You Could Get More Back When You File Your Taxes
About a year ago, in early 2017, the Minnesota Legislature passed a new tax bill. The changes give many Minnesotans new individual tax benefits - which means you could get more money back!
Visit the Minnesota Department of Revenue's website for a full list of changes.
Here are three big changes that might help you:
1) Got Student Loans?
If you do you now qualify for a nonrefundable tax credit on your student loan payments each year. You could get a credit up to $500 per year, or $1,000 for married couples. If you're paying for your kid's college you don't qualify, but if you're saving to pay for college for your kid, you do.
2) Saving for your Kid's College?
This year Minnesotans who contribute to a 529 College Savings Plan can choose a tax credit or a subtraction.Minnesotans can now receive a maximum credit of $500 or 50% of contributions made during the year. Or if you opt for the subtraction you might qualify for up to $3,000 if married and filing jointly. Your accountant will tell you which is best for you.
3) First Time Home Buyer Savings Account
According to the Minnesota Society of Certified Public Accountants, "2017 was the first year that Minnesota individuals could contribute to a first-time homebuyer savings account. Any account holder – whether or not you are also the beneficiary – can subtract the interest earned on the account from your Minnesota taxable income.
Make sure to ask your accountant about these tax law changes to get the most on your return!