2008 Stabilization Act: Deduction for Educator Expenses

January 2, 2009 by: The Tax Man

Teachers and other education workers, such as you, can deduct up to $250 of certain out-of-pocket classroom expenses from gross income. This deduction recognizes that many education professionals purchase classroom supplies with their own money. This popular deduction is now available for expenses incurred in 2008 and 2009. Married taxpayers who file joint returns are entitled to a total deduction of $250 for each spouse, if both spouses are eligible educators and incur qualified expenses.

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Instructors, counselors, principals, and classroom aides, as well as teachers, who work at least 900 hours during the school year, are eligible to take the deduction. However, qualifying individuals must work in a kindergarten, elementary, or secondary school through grade 12.

The $250 deduction can be taken for items purchased at anytime in the year. Teachers who have not spent $250 by the end of a year should consider buying anticipated supplies for the next year, since any unused portion of the deduction cannot be carried over. Year-end purchases while school is out for the holidays will qualify even if the supplies are not used until the following year.

Classroom supplies, such as paper and pens, glue, and scissors qualify, as well as purchases of books and computer equipment, including software. For courses in health and physical education, the supplies must relate to athletics. The IRS has advised teachers and other educators to save their receipts and keep records of their expenses in a folder or envelope noting the date, amount, and purpose of the purchase.

If you have expenses exceeding $250 or have purchased non-classroom supplies, you may still take an employment-related miscellaneous itemized deduction subject to the two-percent floor