Teachers: Can you Deduct Your Out-of-Pocket Classroom Expenses?
As students and teachers head back to the classroom, many educators will dip into their own pockets to pay for school supplies. In fact, the U.S. Department of Education NCES found that 94% of public school teachers bought supplies with their own money, to the tune of $479 per year! Fortunately, there is one important tax break that can help teachers offset some of these expenses, called the Educator Expense Deduction.
Who can claim the Educator Expense Deduction?
You are eligible for the Educator Expense Deduction if you meet the following criteria:
You are a teacher, instructor, counselor, principal, or aide
You work in a public or private elementary or secondary school (grades K-12)
You complete 900 hours of work during the school year
The following educators cannot qualify for the Educator Expense Deduction:
College and graduate-level instructors
Pre-school teachers and aides
How much can you deduct for classroom expenses?
The tax law allows you to deduct up to $250 in school-related expenses from your income. If you and your spouse are both teachers and you file jointly, you can each claim up to $250, for a possible $500 total. Of course, you’ll want to keep all your receipts together in a secure place. This will ensure that you don’t miss out on a possible deduction when you go to file. The IRS even recommends that you record the date, amount you spent, and the purpose of each purchase, so there are no questions at tax time.
Any of the following expenses will count toward your deduction:
Supplies and materials used in the classroom
Professional development classes
Computers, software, and tech services
Athletic equipment (for physical education and health instructors)
Can teachers deduct for unreimbursed employee expenses?
Before 2018, teachers were able to deduct expenses over and above the $250 limit – such as uniforms, union dues and transportation costs, to name a few. But the Tax Cuts and Jobs Act eliminated all miscellaneous deductions, including these unreimbursed employee expenses, until 2026 when the law expires. This means you will not be able to deduct unreimbursed employee expenses on the return you file in 2019.
Do you have to itemize to take the Educator Expense Deduction?
If you are a qualifying educator, you can claim this deduction whether you choose to itemize or take the standard deduction.
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This article is up to date and accounts for tax law changes for tax year 2018 (tax returns filed in 2019). Learn more about tax reform enacted under the Tax Cuts and Jobs Act here.