W-2s, 1098-Ts, and More: It’s Tax Season Again!

Everyone’s probably either super excited or super stressed now that it’s tax season! Have no fear if you still need help with your taxes this year. We are here to provide some resources and tips for you to use when filing for taxes.

Make sure you have all your necessary documents in order to file your taxes. This is a general list of documents that you should bring to your appointment at a clinic or when filing your own taxes, put together by the MN Department of Revenue. Please note that you may need different documents than the ones listed; please confirm with a clinic or accountant.

To look for free tax clinics near you, use this tool put together by the MN Department of Revenue.

Tax Credits and Deductions

Earned Income Tax Credit: You need to be at least 25 but less than 65 to qualify for the EITC without a qualifying child. -IRS.gov

Student Loan Interest: “. . . you may be allowed a special deduction for paying interest on a student loan (also known as an education loan) used for higher education.” -IRS.gov

MN Student Loan Credit: Minnesota residents who make payments on their own postsecondary education loans may qualify for a nonrefundable tax credit. For married couples, each spouse may qualify for this. The maximum tax refund in 2019 is $500.

Renter’s Property Tax Refund: If you’re from Minnesota or have lived in the state long enough, you may know about this refund for renters already. But if you haven’t yet, here is some basic information. There is another form (Form M1PR) that you would fill out and mail in separately by August 15  (file with your taxes) to receive a refund which is usually distributed sometime in August. The refund is “based on their household income, number of dependents, and how much property tax you paid through rent on your principal residence.” You’ll need to receive a Certificate of Rent Paid from your landlord. It’s a document that shows how much rent you paid during the previous year and the amount of property taxes paid through your rent. You must include a CRP when filing your Property Tax Refund return. - MN Dept of Revenue

Education Award: Please note that your Segal AmeriCorps Education award can be federally taxed as income in the same year it is used to pay for tuition and/or repayment of student loans. “If your education award and interest payments total more than $600 in a calendar year, CNCS will send you an IRS Form 1099 to be used in preparing your income tax return.  All education award and interest payments made on your behalf are considered taxable, even if they do not total $600.” You may be eligible for tax reliefs when paying for higher education per the Taxpayer Relief Act of 1997. Contact a tax professional or the IRS for more information about this potential benefit, IRS Publication 970. Also look under the ‘Tax Relief’ tab on the “Tax Implications” page on the NationalService.gov. -NationalService.gov