Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies, and training from their taxes. They can only claim this deduction for expenses that weren’t reimbursed by their employer, a grant, or another source. Eligible educators can deduct up to $250 per person – or $500 if your spouse is a qualified educator and you both file a joint tax return – of non-reimbursed trade or business expenses. The IRS advises keeping supporting documentation, such as sales receipts, before claiming this deduction (IRS, 2021).

The total deduction allowed may not sound like much, but educators all over the U.S. have come to depend on this tax break for a little relief. If you have other questions about tax breaks for teachers—such deductible 403(b) Plan contributions —find out how you can work with one of our tax pros! But there’s also a teacher tax deduction available to help offset these expenses.

Itemized deductions from Massachusetts gross income for employee business expenses

A Houston CPA firm can also assist you in filing out the correct forms to claim this deduction (IRS, 2021). The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. The new tax law suspended that option between Jan. 1, 2018, and Dec. 31, 2025. Fortunately, the IRS offers a little help in the form of its educator expense deduction.

Also, hold on to your receipts in case your accountant or the IRS wants to check your work. Also, your school must provide elementary or secondary education as determined under your state’s law. Hollis Lewis & Company, PLLC is a Houston CPA firm committed to providing our clients with professional and personalized tax preparation, accounting solutions, and business services. The average public school teacher salary for the 2017 to 2018 school year was around $60,483, the National Education Association estimates. Meanwhile, a whopping 94% of public school teachers spent an average of $479 of their own money for their classrooms during the 2014 to 2015 school year, according to a 2018 study by the U.S.

What are above-the-line deductions?

You will report the deduction amount on Schedule 1 of your Form 1040. Eligible instructors can qualify for an educator expense tax deduction of up to $300 for tax year 2022. It extends up to $600 if an educator is married to another eligible https://turbo-tax.org/topic-no-458-educator-expense-deduction/ educator and filing under the status married filing jointly (up to $3000 per person combined). The Internal Revenue Service has long allowed educators to deduct part of the cost of supplies and other expenses from their taxes.

• A Houston CPA firm can also assist you in filing out the correct forms to claim this deduction (IRS, 2021).
• However, neither spouse can deduct more than $250 of their qualified expenses when they file their federal tax return.
• Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies.
• The educator expenses deduction allows you to deduct up to $300.
• Go to IRS Form 2106 and IRS Publication 463 for what qualifies as an impairment-related business expense.

If your expenses exceed $250, you used to treat the amount over that as unreimbursed employee expenses—if the money spent exceeded 2% of your AGI. That deduction went away with the Tax Cuts and Jobs Act (TCJA) of 2017. For additional information regarding the deduction https://turbo-tax.org/ for certain expenses of an eligible educator, see the Instructions for Form 1040 (and Form 1040-SR)PDF or the Instructions for Form 1040-NRPDF. It’s important to keep track of your expenses long before you file your return, so you don’t have to scramble at tax time.

A Closer Look at the Educator Expense Deduction

This deduction is called an “above-the-line” deduction, meaning it reduces your AGI instead of your taxable income. You don’t have to itemize deductions on your tax return  to claim the educator expense deduction. But the IRS has changed the 1040, so now you’ll need to use Schedule 1 to claim this deduction. If you’re an eligible educator, make sure to receipts for qualified expenses so you can report them on your tax return.

That amount goes up to $500 if two qualified educators are married and file a joint return. However, neither spouse can deduct more than $250 of their qualified expenses when they file their federal tax return. For courses in health or physical education, the expenses for supplies must be for athletic supplies.