Wednesday, February 5, 2014

Heads Up MN Homeschoolers: Aids For Non Public School Students Are Now Income To Report on Taxes..........

As the oh-so-happy to track tax changes person that I am - I noticed something new going on with homeschooling in MN  and wanted to see if anyone else has heard/noticed/encountered it.

It goes like this......Up until now the Aids for Non-Public Education (specifically the $40- $70 / child per year for families who choose to be reimbursed for things such as testing, teaching materials etc.)  have regularly been available to families in our state for homeschooling. 

But starting in 2013 there is a new twist that I cant seem to track down on the internet..and the homeschool office couldn't actually clarify from my first call (waiting on a call back from the accountants.)

Somehow - the funds that a family requests reimbursement for under Aids for Non-Public Education are now being considered 'non-earned income' and 1099-misc are being issued to families who request them.

Which hits me a little wrong as that income was already taxed before the homeschool items were purchased and it seems that families would now be taxed twice on the same income?

I might be totally wrong on this .....but the math just doesn't add up.  Any ideas?  I'm emailing HSLDA and MACHE to ask if I can't sort it out - but something doesn't feel right.

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