How to claim the Educator Expenses Deduction

Teachers are always looking for innovative ways to enhance the learning experience of their students. Unfortunately, school budgets are tight, and teachers are often forced to buy materials with their own money. The struggle is real.

But, there is a bright side. The Internal Revenue Service offers a tax break for teachers called the educator expense deduction. This is designed to offset some costs. In this article, we’ll help you understand what you can deduct as a teacher and how to claim these benefits on your federal tax return.

At a glance:

Eligible K-12 educators can deduct up to $300 in unreimbursed classroom expenses per year.

• Qualified expenses include school supplies, PPE, professional development, subscriptions, and computer equipment.
• You can claim this deduction even if you don’t itemize.
• Understanding the educator expense tax deduction

What is the educator expense deduction?

The educator expense deduction is a tax benefit that allows eligible teachers to deduct certain out-of-pocket classroom expenses on their federal tax return. This deduction helps offset the costs of school supplies, professional development courses, and other qualified expenses related to teaching.

This deduction is considered an above-the-line deduction, meaning you can claim it even if you don’t itemize deductions on your tax return. If both spouses are eligible educators and file jointly, they can each claim up to $300, for a total of $600.

Who qualifies as an eligible educator?0100 If both spouses are eligible educators and file jointly, they can each claim up to $300, for a total of $600.

Who qualifies as an eligible educator?

You don’t necessarily have to be a teacher to qualify for this deduction, but you must meet all the following requirements:

You are a K-12 teacher, instructor, counselor, principal, or classroom aide.

You work in a school that provides elementary or secondary education as determined under state law (this could include public schools or private schools).

• You work at least 900 hours during the school year.
• Unfortunately, preschool teachers, homeschool educators, and those working for a college or graduate school are not eligible for this deduction.
• What classroom expenses can teachers deduct?

To qualify for this tax deduction, expenses must be unreimbursed and directly related to teaching. Some examples of qualified expenses include:

School supplies like notebooks, pencils, and markers

Classroom supplies such as bulletin board materials and storage bins

• Personal protective equipment (PPE), including sanitizer, disinfectant, plexiglass, and air purifiers
• Professional development courses that enhance teaching skills
• Educational subscriptions for classroom use
• Computer equipment, software, and supplementary materials used for instruction
• Factors that may reduce your educator expense deduction
• Keep in mind that expenses can only be deducted if they exceed the following amounts for the tax year:

For more info, check out IRS Publication 529.

Tax Tip:

Be sure to save receipts and records of all out-of-pocket purchases to support your deduction in case the IRS asks for documentation.

Other tax breaks for teachersBeyond the educator expense deduction, teachers may qualify for additional tax deductions and tax credits, such as:

Education credits for advanced degrees

– The Lifetime Learning Credit helps cover higher education expenses for those pursuing an advanced degree or taking professional development courses.

• Flexible spending accounts (FSAs) – Some school districts offer FSAs, which allow teachers to set aside pre-tax dollars for qualified expenses. You can’t use the accounts to buy pencils and notebooks but you can use them for health-related classroom supplies, like first aid kits and PPE. To claim teacher tax deductions, you must enter them on Schedule 1 (Form 10040) of your federal income tax return. TaxAct(r), our tax preparation software, can help you claim the educator expense. To report education expenses in the TaxAct program:
• From within your TaxAct return (Online
• or Desktop), click Federal

(on smaller devices, click in the top left corner of your screen, then click

Federal

).

1. Click the Other Adjustments dropdown, then click Educator expense deduction as shown below.Continue with the interview process to enter your information.Self-employed tutors or education consultants can deduct classroom expenses as business expenses on Schedule C of their tax return. We can help with that, too — check out TaxAct Self-Employed.
2. Common mistakes to avoid when filingFailing to keep receipts for unreimbursed expensesConfusing a tax deduction with a tax creditMisreporting taxable income or missing potential tax deductionsFAQs about teacher tax deductions

3. Can homeschooling parents claim the educator expense deduction?

No, unfortunately the IRS does not recognize homeschool parents as eligible educators for this deduction. Only kindergarten through grade 12 educators working for eligible institutions qualify.

Do physical education teachers qualify?

• Yes, as long as they meet the 900-hour requirement in an eligible school!
• Can I still take a deduction if I am partially reimbursed?
• If you are reimbursed for supplies, you must subtract the reimbursement amount from the cost of the supplies. If you spend $200 in supplies and receive $100 reimbursement, you may deduct the remaining $100.

What kind of records should I keep?

Save receipts for all classroom You can highlight or mark the line items on your receipts each time you make a purchase that qualifies. This will make it easier to separate work and personal expenses later.

If you use personal finance software or an online record-keeping system, categorize each expense throughout the year to stay organized.

What if my spouse and I are both teachers?

If you and your spouse are both eligible educators, you can deduct a maximum of $600. If you file separate returns, you each can deduct $300. Can I deduct the rest?

Unfortunately, not in most cases. The Tax Cuts and Jobs Act of 2017 eliminated the deduction for unreimbursed employee expenses for most professions — including teachers.

That said, a handful of states still allow that deduction for employees, including teachers, so you can claim it on your state return, depending on where you reside. Alabama, Arkansas, California Hawaii, Minnesota, New York and Pennsylvania allow a deduction for non-reimbursed expenses. However, it’s only available as a miscellaneous itemized deduction.

Does my state law offer additional educator tax benefits?

Some states offer extra tax deductions or tax credits for teachers, like the unreimbursed employee expenses mentioned above. You can lower your taxable income by taking advantage of the Educator Expense Deduction and other available tax deductions. TaxAct can help you claim the teacher tax deductions that you are eligible for when you are ready to file your federal tax return.

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