WASHINGTON, D.C. — As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 for out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year.
This is the same limit that applied in 2022, the first year the provision became subject to inflation adjustment. Previously the limit was $250. The limit will rise in $50 increments in future years based on inflation adjustments.
This means that an eligible educator can deduct up to $300 of qualifying expenses paid during the year. If they’re married and file a joint return with another eligible educator, the limit rises to $600 – although not more than $300 for each spouse.
Educators can claim this deduction even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during the school year. Public and private school educators alike qualify.
Educators can deduct the unreimbursed cost of:
• Books, supplies and other materials used in the classroom.
• Equipment, including computer hardware, software and services.
• COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant 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 items recommended by the Centers for Disease Control and Prevention.
• Professional development courses related to the curriculum they teach or the students they teach. But the IRS cautions that, for these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For details, see “Publication 970, Tax Benefits for Education,” particularly Chapter 3.
Qualified expenses don’t include the cost of home schooling or for non-athletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, cancelled checks and other documentation.