Deducting Education Expenses

• The Teacher Tax Relief Act allows teachers and other eligible educators to deduct the cost of books, supplies, equipment and teaching materials. Many teachers find themselves paying for classroom materials out of their own pockets. The Teacher Tax Relief Act enables qualifying educators to recoup some of those out-of-pocket expenses when filing their individual tax returns.
  
  

Establishing Educator Eligibility

• Qualifying educators include those teachers who work 900 hours in a school year at either a public or private school. Classroom teachers who work at the elementary or secondary levels can be qualifying educators. However, instructors, aides, principals, and counselors can also be eligible, provided they meet the 900 hour eligibility requirement.
  
  

The Amount and Type of the Deduction

• The act lets eligible educators make a $250 "above the line" deduction for the tax year. This deduction is described as being "above the line" because it can be claimed regardless of whether or not the educator itemizes deductions or files using the standard deduction.
  
  

Education Expenses that can be Claimed

• The Teacher Tax Relief Act covers unreimbursed expenses. Educators who have already been reimbursed by their school districts, by grants, or by students or their clubs risk audit woes by trying to double dip. Books, supplies, equipment, and materials that are being claimed as deductions must have been used in the classroom. Health and gym teachers are only able to claim those expenses that are related to athletics.
  
  

Tracking Education Expenses

• Those educators that do qualify should keep track of their out of pocket education spending and be aware of the $250 limit. As with any deduction, it is important to properly record expenses. Keeping a file of receipts and amounts spent makes claiming the Teacher Tax Relief Act much easier come tax time.