Type of Deduction: Above-the-line tax deduction (you don't need to itemize).
Basics: If you are a teacher, and you paid for classroom supplies and other materials out of your own pocket, then you can claim those expenses as a tax deduction.
Limits: You can claim up to $250 of classroom expenses for supplies, materials, books, software, and so forth. If both you and your spouse are educators, you can both claim up to $250 of expenses for $500 total on a joint return.
Qualifications: You are a teacher, aide, instructor, counselor, or principal, and worked in a school at least 900 hours during the school year. Only grade school and high school educators qualify (K through 12th grade).
Where to Claim the Deduction: You claim your educator expenses tax deduction on Form 1040 Line 23. Write an "E" on the dotted line.
This line is also used to claim a deduction for Archer Medical Savings Accounts. If you are claiming both deductions, write "B" on the dotted line, and attach a statement that details the amounts claimed for each deduction.
From the IRS: "If you are an eligible educator, you can deduct from gross income a portion of your qualified expenses. You can deduct these expenses even if you do not itemize deductions on Form 1040, Schedule A. This deduction is for expenses paid or incurred during the tax year. Previously, these expenses were deductible only as a miscellaneous itemized deduction subject to the 2% of adjusted gross income limit." (Educator Expense Deduction, Tax Topic 458)
Tax Law: The deduction for educator expenses is found in Internal Revenue Code Section 62(a)(2)(D) and Section 62(d)(1).
More Information: Additional information about the educator expenses deduction can be found at the following Web sites:
- Educator Expense Deduction (IRS Tax Topic 458)
- Teachers Should Save Receipts for Educator Expense Deduction (IRS Tax Tip, IR-2005-82)
- Educator Expense Deduction (IRS Tax Tip, 2005-53)
- Internal Revenue Code Section 62 (Legal Information Institute, Cornell Law School)
