Teachers Rejoice!

Educators Tax Deduction (max. $250) is Reinstated for 2007

In a victory for teachers who frequently spend their own money on behalf of their students, Congress approved an extension of the $250 tax deduction for teachers who incur expenses out of their own pockets during the 2006 and 2007 tax years.

The educator (or teachers’ supply) deduction reduces adjusted gross income and can be used even if teachers do not itemize when preparing their taxes. Qualifying educators (those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal, or aide for K-12) can once again deduct up to $250 in out-of-pocket expenses for items such as classroom supplies and instructional materials used in the classroom for private, public, and secondary schools.

Like any other claimed deductions, those claiming this deduction need records of the qualifying expenses, noting the date, amount, and purpose of each purchase. As in the past, for teachers who itemize their deductions, expenses in excess of the $250.00 cap can still be deducted as an unreimbursed employee expense. The National Education Association estimates that each teacher spends an average of $450 per year of their own income for classroom supplies.