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According to the 2023 survey from AdoptAClassroom.org, teachers are spending an average of $860 of their own money each year on classroom supplies. That’s a significant investment in your students’ education and a testament to your dedication. In fact, a staggering 96% of teachers purchase school supplies out of pocket so their students don’t go without.
As you gear up for the upcoming 2024 school year, it’s time to make sure you're not missing out on a valuable opportunity to recoup some of those costs. The Educator Expense Tax Deduction can help you keep more of your hard-earned money in your pocket.
Here’s everything you need to know to take full advantage of this deduction...
What Is the Educator Expense Deduction?
The Educator Expense Deduction allows eligible teachers, instructors, counselors, principals, and aides to deduct up to $300 ($600 if married filing jointly, but not more than $300 each) of unreimbursed expenses from their taxable income.
This deduction is an above-the-line adjustment to your income, meaning you can claim it on your tax return whether you choose to take the standard deduction or itemize your deductions.
It also reduces your adjusted gross income (AGI), which may lower your AGI enough for you to become eligible for certain tax benefits.
It’s a great way for educators to keep more of their hard-earned money.
Who Can Claim the Deduction?
According to the IRS, an "eligible educator" is a taxpayer who meets both of the following criteria:
Kindergarten through grade 12 teachers, instructors, counselors, principals, or aides
Must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.
However, individuals working at pre-schools, homeschooling their own children, or who are employed by a college or graduate school would not qualify for this deduction.
NOTE: If you begin your teaching career in the fall, you most likely will not be able to claim the deduction for that tax year because you would not reach the 900 hours by December 31st.
Qualifying educator expenses
The deduction applies to a range of out-of-pocket expenses you’ve incurred while preparing for and working in your classroom. Here’s what you can deduct:
Professional development courses to enhance your teaching skills.
Books, supplies, equipment and supplementary materials used in the classroom
Computer equipment (webcams, headsets, etc.), including software and services
For health or physical education courses, the expenses must be for athletic supplies
Supplies for preventing the spread of COVID-19 such as:
Personal Protective Equipment (PPE) such as face masks, disposable gloves,
disinfectants, hand soap and sanitizers,
air purifiers,
Tape, chalk, or paint to mark off areas of social distancing,
Physical barriers, such as plexiglass,
and other supplies for preventing the spread of COVID-19
Deductions Limits and other Restrictions
While the $300 deduction might not cover all of your classroom expenses, it provides a valuable tax break to help offset the costs you’re already shouldering.
Deduction Limits
As an eligible educator, you can deduct up to $300 per year of qualifying expenses.
If you’re married to another teacher, you can each claim up to $300 of unreimbursed expenses, making the total possible deduction $600. Just remember that the deduction is per eligible educator and each spouse's qualifying expenses are capped at $300, even if your filing a joint return.
Reimbursement Rule
You can only deduct expenses that weren't reimbursed by your employer, a grant, or other sources.
Restrictions & Exclusions
Under certain circumstances, your Educator Expense Deduction may be reduced.
Interest on series EE and I U.S. savings bonds excluded from income used to pay for higher education expenses
Distributions from qualified state tuition programs (529 plans) that you didn't have to report as taxable income
Tax-free withdrawals from Coverdell education savings accounts that you used to pay for your own schooling or professional development courses.
How do I claim the Educator Expense Deduction on my taxes?
Claim this deduction on your Form 1040, 1040-SR, or 1040-NR by attaching Schedule 1 (Form 1040).
This deduction will reduce your amount of taxable income, which then reduces the taxes you owe.
Recordkeeping Requirements
Remember, you are required to keep adequate records to prove everything claimed on your tax return.
Make sure you save receipts and make notes as to what you purchased, when you made the purchases, and why.
TAX PRO TIP: Keep your eligible educator expenses separate from any personal expenses.
Spread the Word!
If you’re a teacher who could benefit from this tax deduction, or if you know a fellow educator who might be missing out, share this blog post with them. Let’s make sure every dedicated teacher can take full advantage of this tax break and keep more of their hard-earned money!
Looking to work with a Tax Professional who wants to help you…
• Legally lower your tax liability and/or maximize your refund,
• Keep more of your hard-earned money,
• Empower you with financial knowledge while saving you time?
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal, tax or accounting advisor.
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