As the new school year kicks off, it’s worth noting that there is a federal tax deduction for teachers and other education professionals who incur out-of-pocket classroom expenses.
The deduction is for up to $300 in 2023, the same amount as in 2022. In the future, the limit will rise in $50 increments based on inflation adjustments.
Educators can claim this deduction, even if they take the standard deduction.
Eligible educators include anyone who is a K- 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during the school year, in either a public or private school.
There are numerous expenses that qualify, including books, supplies, computer, and other equipment.
Professional development courses may also qualify for the deduction, but in these situations, it may be better to look into the lifetime learning tax credit.
Homeschooling expenses are not eligible for the deduction.
In additional to the federal tax deduction, some states have their own deductions for educator-related expenses, including Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania, but not Georgia.
If you plan to claim the deduction, remember to keep documentation proving you are truly eligible, including receipts, cancelled checks, and any necessary notes or records.
Do you have questions about tax deductions related to your job, regardless of your line of work? We can help you evaluate your overall tax picture. To get started, call us at 706-632-7850 or email our office manager Kimberly Mortimer at firstname.lastname@example.org.