New Minnesota tax changes help college students
For college savers: Two changes were made that involve 529 college savings plans. First, contributions of up to $3,000 can now be deducted when filing Minnesota income taxes. The second change helps families with incomes below $160,000; those who save money through a 529 plan will receive a tax credit that reduces a family’s Minnesota tax liability by up to $500.
For current students: Policymakers put $36 million of new funding into the Minnesota State Grant program, which helps one out of four Minnesota college students at public and private institutions.
For college grads: A new tax credit was created for college graduates with qualified education loans and targets borrowers with a high debt-to-income ratio. About 65,000 Minnesotans will benefit from this credit with the average credit expected to be about $414. The tax credit will be available for use when Minnesotans file their 2017 taxes.