Qualifying instructors and educators can deduct up to $250 in teaching expenses that have not been reimbursed under the educator expense deduction programme. Work experience at a school that provides kindergarten through 12th grade education is required for eligibility.
A total of $500 in deductions can be claimed if you and your spouse both work in education and meet the preceding requirements. It’s important to keep in mind that the deductions are made per person. When you and your spouse each spend $50 on eligible expenses, your combined maximum deduction would be $300, rather than $500.
For example, you can deduct the cost of academic journals, union dues, and gas expenses for field trips in addition to classroom supplies.
Above-the-line tax deductions are included here. It means that even if you don’t itemise deductions on your income tax return, you can still claim these deductions. Amounts deducted from your gross income, rather than your AGI, are not subject to phase-outs based on your income level for deductions made above the line.
The Educator Expense Deduction, like all IRS deductions, requires that you save all of your receipts. Keeping these records handy in the event that you are requested to prove your expenses is a good idea. Keep track of how much you’ve spent on non-reimbursed expenses so that you know where your deduction stands at various points in the calendar year. This should prevent you from overspending. With a $250 deduction that might help both you and your pupils, it’s easy to get enthused about it. It’s just as easy to blow through $250 in a matter of days, leaving you unable to claim any further costs for the remainder of the year.
Many states and municipalities offer comparable incentives for educators despite the federal government’s $250 cap. Check with your tax advisor or the State Department of Revenue to see if your jurisdiction offers any further incentives.
Any part-time employment you do outside of the school year, as a friendly reminder to educators, is taxable income. It is important to note that whether you work as a tutor, work at a learning centre, or paint houses during the summer, you must disclose these extra funds to the IRS.