Tax credit changes can provide you with more money. We help you
stay informed.
Have a low or moderate income? Recent tax changes in Minnesota could provide you with additional funds.
The Minnesota Child Tax Credit, new Advance Child Tax Credit, and Renter’s Credit updates are important to understand in 2025.
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Minnesota
Child Tax
Credit
More money for families.
The Minnesota Child Tax Credit (MN CTC), new last year, is specifically for Minnesota residents.
You may qualify for the MN CTC if you’re raising children in Minnesota and meet the income guidelines—even if you have no income.
If your family earns $31,090 or less ($36,880 for married filing jointly), you can get the full credit of $1,750 per child with no limit on the number of children. Families with higher incomes may still qualify for a reduced amount. The amount you receive also depends on your family size. View income guidelines here.
Advance Payments of the MN CTC
In tax season 2026, you can choose to receive part of your MN CTC for tax season 2027 early.
When you file in tax season 2026, you’ll be able to decide if you want to receive some of your 2027 MN CTC in advance.
If you choose the advance option, you’ll get three payments in 2026 — in August, October and December — and then receive the rest when you file your taxes in 2027.
K-12 Education Credit
Save your receipts! Get up to 75% back from certain educational expenses.
If you have a child in grades K-12, you may qualify for this tax credit that helps ease the burden of educational costs.
You can get money back for common expenses such as notebooks, calculators, textbook rentals, tutoring services, drivers ed, and more. To claim this tax credit, it’s important to provide documentation of what you’ve spent.
To learn about income limits and the full list of qualifying expenses, visit the MNDOR website.
Renter’s
Credit
Changes
Renters will receive their Renter’s Credit shortly after filing — there is no longer a separate refund issued later in the year.
The Renter’s Credit is now part of your state tax return (Form M1), so you don’t need to file it separately anymore.
Make sure to bring all your Certificate of Rent Paid (CRP) forms when filing. If you forget them, you’ll need to fix your return later, which will take much longer to process.
You also won’t get a separate summer refund for the Renter’s Credit—it will be included in your state refund and processed soon after you file.
These changes only affect renters. Homeowners and mobile home owners still need to file the M1PR form.
Need assistance with filing your taxes?
You may qualify for free tax return preparation through Volunteer Income Tax Assistance (VITA). These programs help prepare federal and state income tax and property tax refund returns during the regular tax-filing season.
Prepare + Prosper offers free tax preparation for those who meet certain income requirements and run fall and summer tax clinics. For more information and to schedule an appointment, visit prepareandprosper.org.
You may also qualify to file your own income tax return electronically at no cost. For details, see free electronic filing.
The content in this website is not meant to replace income tax guidance from an accredited tax preparer or tax attorney.
Service made available through a grant provided by the state of Minnesota.