The Educator Expense Deduction allows teachers and certain academic administrators to deduct a portion of the costs of technology, supplies, and certain training. Here’s what teachers need to know about taking the Educator Expense Deduction on their tax returns.
Key Takeaways
- The Educator Expense Deduction allows eligible educators to deduct up to $300 worth of qualified expenses from their income for 2023 and 2024.
- Qualified expenses include books, classroom supplies, and technology and computer software used in the classroom during the process of teaching students.
- Eligible educators have to work as a teacher, instructor, counselor, principal or classroom aide, work with students in kindergarten through grade 12, and complete at least 900 hours of work during the school year.
- Married couples where both work as educators are both able to take the deduction.
The Educator Expense Deduction
Have you spent money this year stocking up on crayons, books and other supplies for your classroom? Have you taken classes to improve your teaching skills that were not paid for by your employer? If you’re an eligible educator, the Internal Revenue Service (IRS) may let you deduct some of these expenses from your taxes this year.
The Educator Expense Deduction allows eligible educators to deduct up to $300 worth of qualified expenses from their income for 2023 and 2024.
Qualified expenses include purchases such as:
- Books and classroom supplies
- Technology and computer software used in the classroom during the process of teaching students
You also may be eligible to claim the Educator Expense Deduction for professional development courses related to teaching that were not reimbursed by your school or by another source.
Who is eligible?
Teachers may be eligible for the Educator Expense Deduction if they meet certain criteria. You have to:
- Work as a teacher, instructor, counselor, principal or classroom aide
- Work with students in kindergarten through grade 12
- Complete at least 900 hours of work during the school year
- Be employed by a school that provides elementary or secondary education as determined by state law
An educator who worked in a first-grade classroom at a public school and met the hours requirement would likely qualify for the deduction. Similarly, a guidance counselor who purchased materials to work with students could also be eligible.
- However, individuals working at pre-schools, homeschooling their own children, or who are employed by a college or graduate school would not qualify for this deduction.
- If two teachers are married and filing taxes jointly, they are eligible to deduct a total of up to $600, with no more than $300 in expenses for each person for 2023 and 2024.
TurboTax Tip:
You can’t deduct expenses reimbursed by your school, covered by a grant or another source.
How does the educator expense work?
In order to take the Educator Expense Deduction, teachers should begin by determining eligibility. Once you have verified that you meet the minimum hours and that you work in a qualifying school, look at your expenses over the last year that qualify for this deduction. There are a few factors that influence how much you can deduct:
- You can’t deduct expenses reimbursed by your school, covered by a grant or another source.
- Expenses can only be deducted when they exceed tax-free withdrawals from your Coverdell Education Savings Account, distributions from state tuition programs that you don’t report as income, and interest on savings bonds that don’t need to be reported if you paid higher education expenses.
- For tax years prior to 2018, qualified expenses in excess of the Educator Expense limits may be deductible as itemized deductions instead.
For more detailed information on the Educator Expense Deduction, look to IRS publication 529.
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FAQs
According to the IRS, eligible teachers can deduct up to $300 ($600 if married to another teacher and you are filing jointly) of unreimbursed “unrelated trade or business expenses” on your tax return for 2023.
What is the educator expense deduction? ›
The Educator Expense Deduction allows eligible educators to deduct up to $300 worth of qualified expenses from their income for 2023 and 2024. Qualified expenses include books, classroom supplies, and technology and computer software used in the classroom during the process of teaching students.
How much can you deduct for educational expenses? ›
The American Opportunity Tax Credit lets you claim all of the first $2,000 you spend on eligible education expenses, plus 25% of the next $2,000, for a total of $2,500. Qualified expenses include: Tuition.
What is the maximum amount of the educator expense deduction that they may claim on their form 1040? ›
If you're an eligible educator, you can deduct up to $300 ($600 if married filing jointly and both spouses are eligible educators, but not more than $300 each) of unreimbursed trade or business expenses.
What is the unreimbursed educator expenses limit? ›
If you're an eligible educator, you can deduct up to $300 of unreimbursed job-related expenses. You're an eligible educator if you meet the following criteria: You work as a teacher, principal, counselor, instructor or aide. You've worked at least 900 hours during the school year.
Can teachers write off cell phones? ›
You can only deduct the portion of the phone bill you can document for business/school use in the event of an audit. However, you can deduct the entire phone bill if it is dedicated solely for business.
How much can I claim for donations without receipts? ›
For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property other than cash contributed.
How do I get the full $2500 American Opportunity Credit? ›
Be pursuing a degree or other recognized education credential. Have qualified education expenses at an eligible educational institution. Be enrolled at least half time for at least one academic period* beginning in the tax year. Not have finished the first four years of higher education at the beginning of the tax year.
Do college students get $1000 back on taxes? ›
You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.
Why am I not getting education tax credit? ›
You may not qualify for an education tax credit if you earn more than the income limits, if you didn't pay the educational expense you're claiming the credit for, if someone else can claim you as a dependent for tax purposes, or if your tax filing status is married filing separately.
TPT is not a 501(c)(3) non-profit, and contributions made on TPT ClassFund are generally viewed as personal gifts to the recipient. As a result, contributions are unlikely to qualify as tax-deductible donations, and TPT won't issue a tax receipt or any other tax documents related to ClassFund contributions.
Can teachers deduct mileage on taxes? ›
You should always keep your receipts with your tax records. This way, if the IRS does question your deductions, you have proof of your expenses. Can teachers deduct mileage? Only teachers who are self-employed can deduct their mileage from job to job.
Can homeschoolers deduct educator expenses? ›
Unfortunately, while homeschooling can get quite expensive, at the current time, there are no tax breaks designated specifically for homeschoolers by the federal government. Tuition costs are a personal expense and therefore not deductible, and this includes things like ballet or piano lessons.
Can you write off school supplies? ›
Credits for school supplies, equipment and course materials
For the American Opportunity Credit only, expenses for books, supplies, and equipment the student needs for a course of study are included in qualified education expenses, even if it is not paid to the school.
What college expenses are tax deductible for parents? ›
You can claim the American opportunity tax credit (AOTC) on 100% of the first $2,000 of your child's college tuition and expenses and 25% of the next $2,000 in tuition and related expenses, up to a maximum of $2,500 per year. The eligible expenses include: Qualified tuition and fees.
What is the maximum employer deduction for employee education expenses? ›
Payments in excess of annual limits.
As the employer, you may deduct the entire amount that you pay for the employee's educational costs as a business expense. However, only $5,250 is not considered wages and therefore, not subject to payroll taxes. Amounts over the annual limit are subject to income and payroll taxes.
Who gets to deduct student loan interest? ›
You can usually claim the student loan tax deduction if you meet all these requirements: Your filing status is any status except married filing separately. No one else is claiming you as a dependent. You're legally obligated to pay interest on a qualified student loan.
Are employee education expenses tax deductible? ›
To be deductible, your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) your employer or the law requires to keep your present salary, status or job.
What expenses are eligible for American Opportunity Credit? ›
What expenses are eligible for the American Opportunity credit? Qualified education expenses include amounts spent tuition and required fees and materials for course enrollment. This includes books, supplies, and equipment needed for a course of study.
