When tax time comes around, it’s natural for teachers to start scrounging for those receipts for all of those classroom supplies they’ve purchased out of pocket during the year. But hold up: Is it worth it to pull out all those receipts? What can teachers write off on taxes in 2023? What tax deductions are OK to take if you’re a teacher?
The teachers on the Teach Starter team have crunched the numbers, reviewed updates to the teacher deductions allowed by the IRS, and come up with some tips for teachers on maximizing the 2023 educator expense credit! Read on to find out how much you are allowed to take off your taxes and what items qualify for deductions.
How Much Do Teachers Spend Out of Pocket?
Wonder how many teachers spend their own money in the classroom? The number is nearly all with 95% percent reporting their classroom budget isn’t enough to cover everything they need in a 2021 survey. The Adopt a Classroom survey of teacher spending in 2021 found the average spending was $750 a year, with purchases for COVID safety regulations increasing the load for many teachers. COVID purchases alone cost an average of $160 per teacher in the 2020-21 school year.
In years past, policy experts at the Economic Policy Institute have done similar reviews of teacher spending, and their analysis indicates nine in 10 teachers are not reimbursed for the things they buy. And if you’re not being reimbursed, that’s where keeping track of your spending could become useful come tax time.
What Can Teachers Write Off On Taxes in 2023?
The decision of how much teachers can deduct from their income taxes lies with the Internal Revenue Service, and in 2023 the answer is a total of $300 can come off a teacher’s taxes for expenses. That’s $50 more than teachers were allowed to deduct in 2022.
But hold on a second! There are some rules and regulations that you’re going to have to keep in mind! First off, the figure only applies to spending that wasn’t reimbursed. After all, if you got a check back from your school district or a grant to cover the costs, it technically wasn’t out-of-pocket spending, and that means it doesn’t qualify as an income tax reduction.
Here’s what else you need to keep in mind:
Teachers who can take the $300 tax credit include:
- Those who work at least 900 hours in the year at a school
- Those who work as a teacher, principal, aide, instructor, or counselor
- Those who teach any grade from kindergarten through 12
- Those who work in a school providing elementary or secondary education
Teacher Write-Offs
Yes, you can write off a Teach Starter subscription — hey, we’ve had the question, so we figured we’d answer right away. Your Teach Starter subscription unlocks thousands of teaching resources, games, and digital tools which means it qualifies under the IRS stipulation that teachers can write off “supplementary materials.”
Other items teachers can apply toward their $300 deduction include:
- Professional development
- Books for the classroom
- Supplies from pencils to manipulatives
- Computer equipment including related software and services
- Athletic supplies — but only those used for health and physical education
Can I Write Off COVID-19 Classroom Expenses?
There are still teachers making COVID-related purchases such as masks, and the IRS is still listening to you. The answer is yes, teachers can apply some of their COVID-19 classroom expenses to their income tax write-offs in 2023, so long as they weren’t reimbursed by the school district. That can apply to masks mandated by the district, hand sanitizer for the classroom, cleaning supplies used to keep germs at bay, and even air purifiers you purchased for your classroom.
Other pandemic-related items that can be applied to your $300 educator expense tax deduction for 2023 if you’re a teacher include:
- Hand soap
- Disposable gloves
- Tape, paint or chalk to guide social distancing
- Physical barriers, such as clear plexiglass
What If My Spouse and I Are Both Teachers?
If you are married to another teacher, your teacher deduction options go up — sort of. Each of you gets to claim your $300, for a total $600 deduction if you file a joint tax return.
Are There Any Other Teacher Tax Deductions?
Your accountant is your best bet for personal deductions beyond the standard teacher deductions — after all, you may have a side gig we don’t know about! But if you’re a teacher who has gone back to school to pursue additional education, be aware that there are deductions for tuition that may exceed that $300 limit.
And don’t forget to load up on our favorite financial literacy resources for teachers!
Disclaimer: This content was created for informational purposes only and is not intended to provide — nor should it be relied on for — tax, legal or accounting advice. For more information or to determine which deductions you might qualify for, talk to an accountant or review the IRS Educator Exemption.
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