The Internal Revenue Service is reminding teachers and other educators planning ahead for 2022 that educators will be able to deduct up to $300 of out-of-pocket classroom expenses when they file their federal income tax return in 2023.
This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax years 2002 through 2021, the limit was $250 per year. This means that for people currently filing their 2021 tax returns due this year, the deduction is limited to $250. The limit will rise in $50 increments in future years based on inflation adjustments.
For 2022, an eligible educator can deduct up to $300 of qualifying expenses. If they are married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse.
Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during the school year. Both public- and private-school educators qualify.
Here’s what’s deductible:
- Books, supplies, and other materials are used in the classroom.
- Equipment, including computer equipment, software, and services.
- COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers, and other items recommended by the Centers for Disease Control and Prevention (CDC).
- Professional development courses related to the curriculum they teach or the students they teach. For these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit.
Qualified expenses don’t include expenses for homeschooling or for nonathletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, canceled checks, and other documentation.
With the tax deadline just around the corner, the IRS reminds any educator still working on their 2021 return that they can claim any qualifying expenses on Schedule 1, Line 11. For 2021, the deduction limit is $250. If they are married and file a joint return with another eligible educator, the limit rises to $500. But in this situation, not more than $250 for each spouse.
Whether a return is self-prepared or prepared with the assistance of a tax professional or trained community volunteer, the IRS urges everyone to file electronically and choose direct deposit for any refund.
In addition, the IRS urges anyone with tax due to choosing the speed and convenience of paying electronically, such as with IRS Direct Pay, a free service available only on IRS.gov.
If you are unable to file your return on time remember you can file an extension form. Remember that this year the tax deadline dates are:
- Monday, April 18 for most taxpayers.
- Tuesday, April 19 for residents of Maine and Massachusetts.
- Wednesday, June 15 for most Americans who live abroad.
Educators who need help filing deductions for classroom expenses can call Legal Tax Defense now to connect with a Tax Attorney to resolve a tax problem.
Disclaimer: Alan Mendelson is a well-known TV consumer news reporter who reports on tax issues. You should seek professional advice if you have tax questions or issues.