Article: 50572
Overview
Minnesota offers a special income tax credit for licensed teachers who earn a master’s degree in their field of licensure. This credit is intended to support advanced education and promote professional growth in K–12 education.
To claim this credit, you must complete the Credit for Attaining Master’s Degree form in your Minnesota return, which aligns with Schedule M1CMD.
Who Qualifies for the Credit?
You may be eligible if:
- You are a licensed classroom teacher in Minnesota.
- You earned a master’s degree in the same content field as your teacher’s license.
- The degree was awarded in a tax year for which you have not already claimed the credit.
- You taught in a Minnesota public school or charter school after receiving the degree.
Note: The credit amount is $2,500 and is nonrefundable, meaning it reduces your tax liability but will not result in a refund if no tax is owed.
Tips for Filing
- The credit may only be claimed once per taxpayer, for one qualifying degree.
- Keep a copy of your transcript or diploma and teacher licensure documentation for your records.
- This credit cannot be claimed in the same year as another master’s degree-related deduction or credit, unless explicitly allowed.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Minnesota.
- Click on the Credits tab.
- Select Credit for Attaining Master’s Degree to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see:
2024 Schedule M1CMD – Credit for Attaining a master’s degree (PDF)