Teacher Tax Credits

Please consult a professional accountant with your particular tax questions.

It isn’t unusual for teachers to spend their own money on classroom supplies. Teachers want what’s best for their students, so they will often purchase items such as crayons, tissues, construction paper and even books, when school budgetary concerns become an issue. They also sometimes purchase materials to advance their own pedagogy, buying texts and subscribing to services to assist with curriculum planning, classroom management and other facets of instruction. But what many teachers don’t realize is that the IRS offers a teacher tax credit to offset some of these costs.

How the Teacher Tax Credit Works and Eligibility Factors

The Educator Expense Deduction was created in 2002 and will expire at the end of this year unless it is extended, as it has been in the past. It allows educational professionals, such as teachers and aides, to deduct up to $250 annually in classroom supplies that they have purchased with their own money.

In order to be eligible for the Educator Expense Deduction, you must meet the following criteria:

• Be an educator (teacher, paraprofessional, counselor, administrator, instructor) in grades K-12;
• Work at least 900 hours a year in an elementary or secondary school.

Qualifying Expenses

Educators can deduct money spent on “books, supplies, computer equipment (including related software and services), other equipment and supplementary materials” used in the classroom. For health and physical education courses, “expenses for supplies are qualified expenses only if they are related to athletics.” As with any business expense, it is important that you maintain records and receipts for items purchased. These documents are necessary in case you are audited.

Additionally, if you had teaching expenses prior to the last academic year that you did not claim, you do not need to consider that money lost. You can claim expenses three years after filing a tax return.

How to Get the Teacher Tax Credit

If you file your own taxes, there is an “Educator Expenses” section on standard tax forms. For Form 1040, it is line 23, and on Form 1040A, it is line 16. Both of these forms can be found on the IRS website.

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