The Internal Revenue Service (IRS) posted on its website that Teachers and other educators will be able to deduct up to $300 in out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year.
This is the first time the annual limit has increased since the special education expense deduction was enacted in 2002. The IRS notes that for tax years 2002 through 2021, the limit was $250 per year, and that the limit will increase in $50 increments in future years based on adjustments for inflation.
For 2022, an eligible educator can deduct up to $300 of qualified expenses. If you are married filing jointly with another eligible educator, the limit increases to $600. But in this situation, no more than $300 for each spouse.
The IRS indicates that educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone K-12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during the school year. Both public and private school educators qualify.
Educators can deduct the unreimbursed cost of:
– Books, supplies and other materials used in the classroom.
– Equipment, including computer equipment, software and services.
– Covid-19 protection items to stop the spread of the disease in the classroom. This includes masks, sanitizer for use against Covid-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers such as clear plexiglass, air purifiers, and other recommended items by the Centers for Disease Control and Prevention.
– Professional development courses related to the curriculum they teach or the students they teach (see Publication 970, Tax Benefits for Education, Chapter 3).
qualified expenses do not include the cost of homeschooling or non-athletic supplies for health or physical education courses. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, canceled checks, and other documentation.
For those who received a tax return extension or still need to file a 2021 tax return, the IRS reminds any educator still working on their 2021 tax return that the deduction limit is $250. If you are married filing jointly with another eligible educator, the limit increases to $500. But in this situation, no more than $250 for each spouse.
You may also like:
– IRS expands options to correct tax returns electronically
– IRS calls on 19 million taxpayers who requested an extension not to wait until October to file their 2021 tax return
– IRS presents 5-year strategic plan to help taxpayers: what it plans