As teachers return to the classroom, the Internal Revenue Service (IRS) reminds educators they should consider the deduction for classroom expenses. During the next few weeks, both parents and teachers face back-to-school expenses. Many parents will spend over $500 on clothes, books, computers and other supplies. Similarly, teachers who teach kindergarten through 12th grade will be purchasing many classroom materials for their students. A survey indicated most teachers spend over $600 per year to support their students with educational supplies.
An important benefit for teachers is the above-the-line deduction for classroom expenses. The deduction for 2024 and 2023 is $300, an increase from $250 in earlier tax years.
A benefit of the deduction is that teachers are permitted to take the standard deduction and still deduct educator expenses. If a teacher is married to another qualified educator and they file jointly, they may deduct up to $600 of classroom expenses. Each educator individually, however, is limited to the $300 amount.
- Who Is an Educator? - The IRS defines an "eligible educator" as a teacher, instructor, counselor, principal or aide at a school with students from kindergarten through 12th grade. This could be a public school or a private school. A teacher must work at least 900 hours per year to qualify.
- What Expenses Are Qualified? - There are many classroom expenses that qualify. These could include books, teaching supplies, computers and software. Because there are still COVID-19 cases, the expense also may include masks, disinfectant, sanitizer and disposable gloves.
- What is Not a Qualified Expense? - There are some types of expenses that do not qualify. Expenses for home schooling or expenses by athletic instructors that are not related to their class are not qualified.
- Are Professional Development Expenses Qualified? - If the teacher is qualified and spends funds on professional development courses that are related to his or her teaching area, those expenses can be counted. However, they are still subject to the $300 limit. There may be other deductions or credits (such as the lifetime learning credit) that provide greater benefits.
Editor's Note: As millions of students return to school, it is helpful for both students and teachers that the $300 deduction is above-the-line. Most teachers take the standard deduction and still qualify for this additional tax-saving benefit.
