Editor’s note: A version of this story originally appeared on the NEA Member Benefits website.
Why it matters: You spend your own money on your classroom. Here’s how to get some of it back when you file your taxes.
The big one: The Educator Expense Deduction allows eligible K-12 teachers, counselors, principals and aides who work at least 900 hours a year to deduct up to $300 in unreimbursed expenses directly off their federal adjusted gross income. And the best part? No itemizing required!
• Couples who are both educators filing jointly can claim up to $600 (max $300 each).
• Qualifying expenses include classroom supplies, books, equipment, software, and COVID-related items like masks and air purifiers.
• Professional development courses tied to your curriculum also qualify.
Be aware: Any reimbursements you received — or nontaxable education account distributions — reduce what you can claim.
What’s changing on your federal return:
• The charitable donations above-the-line deduction ($300) is no longer available at the federal level. You can only deduct charitable giving if you itemize.
• Unreimbursed employee expenses beyond $300 are no longer deductible on federal returns.
Other deductions worth knowing: Report any side income, such as tutoring or summer jobs, on Schedule C of your federal return. You can deduct related expenses, but you’ll also owe self-employment taxes. Consider adjusting your W-4 withholding or making quarterly estimated payments to avoid federal penalties.
You can also receive education credits for your own coursework:
• The Lifetime Learning Credit can help you save up to $2,000 per federal return (20% of the first $10,000 in qualified expenses). It applies to career development courses, not just degree programs, but phases out at $80,000-$90,000 adjusted gross income for single filers and $160,000 to $180,000 for joint filers.
• The American Opportunity Tax Credit can help you save up for $2,500 on your federal return, but only for the first four years of college. It could be more useful for your dependents.
Bottom line: Keep your receipts! The $300 federal educator deduction is easy to claim, and if you have side income or continuing education costs, there may be more on the table. Work with a tax adviser or quality tax software to make sure you’re making the most of your deductions. Check to see if you qualify for free help.
