“The Only Two Certainties In Life Are Death And Taxes.” This famous Benjamin Franklin quote stands the test of time.
We all must pay our fair share but there are certain deductions teachers are entitled to – and every teacher needs to know them. Expense limits for last year have changed so even if you have expensed items in the past you need to read this.
In addition to other write-offs and itemized deductions all taxpayers have, ThinkFives researched the tax code and tax resources to identify these Top 5 Teacher Tax Deductions for your filing.
Who qualifies?
Educators can claim this deduction, even if they take the standard deduction. Eligible tax filers include:
- educators in kindergarten through grade 12
- teachers, instructors, counselors, principals or aides
- those who worked in a school for at least 900 hours during the school year
- educators teaching in a public or private school
The Lifetime Learning Credit
The Lifetime Learning Credit covers 20% of education expenses up to $10,000, or a maximum credit of $2,000. This is a credit, so it’s taken off your tax liability dollar for dollar.
The great aspect of this tax credit is that it is not limited to undergraduate education, nor do you have to be pursuing a degree. Educators may make use of this for their own career development or for pursuing a Master’s Degree.
If you are paying out of pocket for classes to improve your job skills, whether that be at school or online, you can take advantage of the Lifetime Learning Credit. You can include the cost of tuition, fees and any books or supplies you are required to purchase directly from the school, so long as it’s a condition of enrollment. This can be worth up to $2,000 per year.
Charitable Donations Deduction
Teachers often support the work of their school or other educational charities. You’ll be happy to know that those donations are eligible for the Charitable Donations Deduction.
As in past years, teachers can deduct donations to a qualified public charity (501(c)(3)) if you itemize.
Many education institutions qualify and numerous charities with educational missions are eager to receive donations.
Make sure that you have good records and are working with school administrators or the principal to get the appropriate records to support the claim.
State Deductions for a Home Office
According to TurboTax, teachers who have been working remotely can write off a home office due to virtual teaching during the COVID-19 pandemic. Note that this does not apply at the federal level.
However, if you live in one of the 7 states that opted to keep their own version of this tax benefit, you are in luck. The following states will provide a deduction on their respective state income tax returns:
- Alabama
- Arkansas
- California
- Hawaii
- Minnesota
- New York
- Pennsylvania
According to TurboTax, “The deduction will be available on state taxes only as a miscellaneous itemized deduction, if you exceed the standard deduction limit. Remember that in order to deduct home office expenses, you must have a dedicated space that you use exclusively for your job. For example, if you work at your kitchen table, it will not qualify.”
Educator Expense Deduction
#1 on our list of the top tax deductions for teachers is the Educator Expense Deduction. For both the 2023 and 2024 tax years, eligible educators can deduct up to $300 of unreimbursed classroom expenses when filing their federal income tax returns. If both spouses are eligible educators and file jointly, they can deduct up to $600, but neither can deduct more than $300 individually.
Deductible Expenses Include:
- Books, supplies, and other materials used in the classroom.
- Equipment, including computer equipment, software, and services.
- Professional development course fees related to the curriculum or students.
- COVID-19 protective items such as face masks, disinfectants, hand sanitizer, disposable gloves, physical barriers, and air purifiers.
It’s important to note that expenses for homeschooling or nonathletic supplies for health or physical education courses are not deductible.
What’s great about this deduction is that you can claim it regardless of whether you take the standard deduction or itemize their tax deductions.
What’s Included?
- books
- school supplies
- computer equipment (webcams, headset) and software
- athletic equipment for physical education teachers
- any purchased item that is helpful to the students and classroom
This is a deduction every qualified teacher needs to take. Studies have shown that the average teacher spends over $600 a year out of their own pocket. This will not cover everything but it will help!
Resource
Do you have any tax tips for fellow teachers?
I need these!!!👏👏
I take the $250 deduction, but it sadly touches the amount of money I put into my classroom and students. 😢
Thanks! These are super helpful