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Funding for homeschooling in Minnesota

Learn about funding options for homeschooling in Minnesota, including tax credits and deductions. Get the most out of your education expenses!
Lisa Thorsen
Written byLisa Thorsen
4 min read
Key takeaways
  • Homeschooling in Minnesota provides valuable financial support through tax benefits, including a K-12 Education Tax Credit of up to $1,500 and a deduction of up to $2,500 per child, which can significantly offset educational expenses
  • While there are no direct payments, these options can help families manage costs effectively.

Homeschooling in Minnesota offers several funding options, mainly through tax benefits. While there are no direct payments or vouchers, families can access education tax credits and deductions to help with expenses.

With approximately 30,000 homeschooled students, Minnesota has a significant homeschool community that benefits from understanding available funding options (NCES estimates, 2023). As of 2024, 12 states have enacted universal or near-universal Education Savings Account (ESA) programs, with Arizona's program alone serving over 75,000 students — making state-funded homeschooling more accessible than ever (EdChoice, 2024).

Can I get paid to homeschool in Minnesota?

You won’t get direct payments for homeschooling in Minnesota. But there are some great tax benefits. You can get an education tax credit of up to $1,500 and a deduction of up to $2,500 per child for education costs. Plus, there's the federal Coverdell ESA, allowing for $2,000 a year.

Funding options for Minnesota homeschoolers

Minnesota doesn't have an ESA or voucher program. But it does offer two tax benefits:

  • K-12 Education Tax Credit (Income-Limited)

    • Up to $1,500 per family.
    • Covers tuition, textbooks, tutoring, and transport to school activities.
    • Income limits start phasing out at $33,500 (single) or $37,500 (married).
    • This is a refundable credit, so you can get money back even if you owe no tax.
  • K-12 Education Tax Deduction (No Income Limit)

    • Up to $1,625 per child in grades K-6.
    • Up to $2,500 per child in grades 7-12.
    • No income limits apply.
    • This reduces your taxable income, but it’s not a direct credit.

These benefits have been around since Minnesota was the first state to introduce education tax deductions in 1955 and credits in 1997.

Qualifying expenses for tax benefits

Not all expenses qualify for Minnesota's tax benefits. Eligible expenses include:

  • Tuition
  • Textbooks
  • Educational software
  • Academic tutoring
  • Transportation for school activities.

Keep track of your spending to make the most of these benefits!

Federal options stack on top

Minnesota’s tax benefits work well with federal options. So, you can combine state and federal benefits for even more support when homeschooling.

Homeschool requirements in Minnesota

Minnesota has moderate rules for homeschoolers:

  • You need to submit an annual report to the superintendent with student info and subjects.
  • Required subjects include reading, writing, math, science, history, government, and health.
  • You need an annual assessment, either through standardized testing or an alternative evaluation.
  • Keep immunization records updated.

The assessment requirement is key. Make sure to test yearly or provide proof of your child's progress.

Public school access

In Minnesota, you don’t have guaranteed access to public school sports or activities as a homeschooler. However:

  • Some districts allow participation, but policies vary.
  • You might be able to enroll part-time for specific classes.
  • Check with your local district to see what options are available.

If public school activities are important to you, do your homework on your district's policies.

The bottom line

Minnesota doesn’t have an ESA, but it offers more tax support for homeschoolers than many states. The education tax credit and deduction are real benefits, especially for families who qualify for the refundable credit.

Together with federal Coverdell ESAs, Minnesota homeschoolers have great financial tools. Keep track of your education expenses throughout the year to take full advantage at tax time.

The state’s moderate regulations require some paperwork, but it’s manageable. Many families find Minnesota provides a good balance of oversight and freedom.

Ready to simplify your homeschool?

BetterSchool can help you track compliance, manage records, and plan your curriculum—all in one place.

Frequently Asked Questions

Lisa Thorsen
Written by
Lisa Thorsen

Co-founder, BetterSchool

Lisa is the co-founder of BetterSchool and a homeschool mom of three. BetterSchool administers the largest independent homeschool community in the country — over 350,000 families across all 50 states.

When COVID hit, Lisa and her husband pulled their children out of school and hit the road. Homeschooling wasn't the plan — it was a necessity. But somewhere along the way, the family fell in love with it: the time together, the ability to tailor lessons to each child's interests, learning at their own pace, the freedom to travel, eating healthy on their own schedule, and the countless other benefits that come with homeschooling.

As they traveled, Lisa kept discovering incredible hands-on learning experiences that most homeschool families had no way of finding. She built BetterSchool to make it easy for every family to find and book the experiences that make learning come alive.

Through her community, Lisa has helped hundreds of thousands of parents navigate homeschooling, while also helping local businesses find and serve the homeschool community. She is the former managing partner of a law firm focused on business law and mergers and acquisitions — BetterSchool is her second technology startup. She holds a J.D. from California Western School of Law and a B.A. from Penn State.

Related articles

Homeschooling in Minnesota: Your essential guideHomeschooling in MinnesotaUnderstanding standardized testing for homeschoolersUnderstanding annual assessment for homeschoolingUnderstanding coverdell ESA for homeschooling

Table of Contents

  • Can I get paid to homeschool in Minnesota?
  • Funding options for Minnesota homeschoolers
  • Qualifying expenses for tax benefits
  • Federal options stack on top
  • Homeschool requirements in Minnesota
  • Public school access
  • The bottom line
  • Ready to simplify your homeschool?
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