Tax Breaks for Teachers
Aug 17, 2023
From developing lesson plans to keeping students engaged, teachers have a lot to keep tabs on. Plus, many educators end up spending their own money on class supplies and other job-related materials. Fortunately, the Educator Expense Deduction can provide tax breaks to help educators lighten their tax burdens. If you want to take advantage of these deductions, keep the following IRS guidelines in mind.
Professional Eligibility
First, determine if you’re eligible to claim deductions.
- You must work at least 900 hours per school year.
- You must work as a teacher, instructor, counselor, principal, or aide.
- You must work in kindergarten to 12th grade in a school that provides elementary or secondary education.
If you meet all these criteria, you can deduct certain unreimbursed expenses below a certain dollar amount.
Eligible Expenses
Educators can deduct out-of-pocket expenses for classroom supplies, training, and work-related travel provided those expenses were not reimbursed through their employer, a grant, or some other source.
Qualified expenses may include the following.
- Books
- School supplies
- Other supplementary classroom materials
- Computer equipment and software
- Supplies and course fees for professional development
Health and physical education teachers may also deduct expenses for athletic supplies.
Maximum Deductions
There’s a limit on how much you can deduct depending on your marital and eligibility status.
- If you’re single or married filing separately, you can deduct up to $300 in 2023.
- If you’re married filing jointly and only one spouse is eligible, you can deduct up to $300 in 2023.
- If you’re married filing jointly and both spouses are eligible, you can deduct up to $600 in 2023.
Track Your Spending
Keep accurate records so you don’t miss out on potential tax savings. Hang on to receipts for any qualifying expenses. You’ll need these for tax purposes, just as you would need them to file for reimbursement. Take note of the purpose of each purchase, as well as the date and amount, if those aren’t specified on your receipts.
Tax Help for Educators
Understanding the tax implications of your educational expenses can help you make informed financial decisions. For insights tailored to your specific situation, schedule an appointment with one of our tax professionals. We can help you manage your taxes, so you can focus on shaping the minds of tomorrow.
