Back to School Tax Tips for Teachers

Across the United States, children are headed back to school, which means teachers are stocking their classrooms. Thanks to the PATH Act, the Educator's Expense deduction is now permanent and teachers of kindergarten through twelfth graders are allowed a deduction of up to $250 spent on classroom supplies without having to itemize their deductions. To qualify, the expenses must be common for the grade level and subject taught and the teacher must work at least 900 hours. From dry erase markers to paperback books and things in between like prizes for games and sheet protectors, it can be deducted - up to $250. These things add up quickly and it isn't unusual for teachers to spend much more than $250 on classroom supplies, when this happens they can often deduct the additional expenses as part of their itemized deductions though there will be more limitations.

In addition to the Educator's Expense deduction, there are a few itemized deductions that a teacher may be able to use on their tax return to reduce their taxes. For example, sometimes a school needs more than casual supplies and a teacher will purchase a set of books or a piece of equipment and donate the item to the school. When this happens, they may be able to deduct the amount of the purchase as a charitable contribution. Other itemized tax deductions include union dues, books, and publications for professional development. As with any itemized deduction, teachers should keep receipts of the odds and ends they pick up for their classroom as well as records of donations and professional development items so they can include them when they do their taxes or give them to their Tax Pro.

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