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2023 Schedule M1529 Instructions
Am I eligible?
You may be eligible for the credit or subtraction if you contributed to a qualified education savings account, regardless of the owner or
beneficiary.
If you are a part-year resident, you will determine your credit based on your percentage of income allocated to Minnesota on Schedule
M1NR, Nonresidents/Part-Year Residents.
You do not qualify for the credit if you are a nonresident or are eligible to be claimed as a dependent.
What is a qualified education savings account?
A qualified education savings account is any state-sponsored section 529 savings plan, including prepaid tuition plans.
What is a qualified expense?
A qualified expense for a section 529 savings plan is a cost required to attend a post-secondary educational institution. Qualified expenses
do not include amounts paid for K-12 education expenses.
If you used a distribution from a 529 savings plan for K-12 education tuition, you must include the lesser of distributions or the earnings
reported on federal Form 1099-Q from the savings plan on line 13 of Schedule M1M.
Can I claim both the credit and subtraction?
No. You may claim either the credit or the subtraction. You cannot claim both.
Is it better to take the credit or subtraction?
It depends on your Minnesota residency, filing status, and income.
Full and part-year residents: If your Federal Adjusted Gross Income (FAGI) is $88,810 or less, the credit will generally provide a
greater benefit to you. If your FAGI is more than $88,810 but less than the $113,810 ($184,860 if you are married and filing a joint return),
complete the Worksheet for Line 5.
If your filing status is Married Filing Jointly and your FAGI is more than $184,860 ($113,810 for all other filing statuses), you are not
eligible for the credit. You may be eligible for the subtraction.
Nonresidents or individuals eligible to be claimed as a dependent: You are not eligible for the credit. You may be eligible for the sub-
traction.
Do I need proof of my contributions?
Yes. Save canceled checks and keep a detailed record of your contributions (such as brokerage and account statements). We may ask you to
show these records if we have questions.
If you claim the credit or subtraction, maintain a record of the amounts claimed while any education savings account is open.
Line Instructions
Round amounts to the nearest whole dollar.
Line 1
Enter the financial institution, account number, and amount you contributed in 2023 for each qualified education savings account. If you
contributed to more than five accounts, include a list of additional accounts on a separate sheet.
Line 2
Enter the total amount of all distributions from accounts that, during the year, you either:
• Were listed as an account owner of
• Made a contribution to
Generally, distributions are reported on federal Form 1099-Q. Do not include transfers or rollovers to other qualified accounts.
Line 4
If you are taking the subtraction instead of the credit, stop here. Enter this amount on line 15 of Schedule M1M, Income Additions and
Subtractions. You may not claim both the credit and the subtraction.
If you are taking the credit instead of the subtraction, skip this line and go to line 5.
Line 5
If you are taking the credit. enter this amount on line 7 of Schedule M1C, Nonrefundable Credits. You may not claim the credit if any of
these apply:
• You claim the Education Savings Account Contribution Subtraction
• You are eligible to be claimed as a dependent
• You are a nonresident
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