With the arrival of the new school year, the Internal Revenue Service (IRS) issued a statement to remind students educators who may deduct up to $300 of reimbursable expenses classroom by 2023, when they file their federal income tax return next year.
This is the same limit that was applied in 2022, the first year this provision became subject to inflation adjustment. Previously the limit was $250. The limit will increase in $50 increments in future years based on inflation adjustments.
The IRS explains that an eligible educator can deduct up to $300 of qualified expenses paid during the year, and if they are married filing jointly with another eligible educator, the limit increases to $600.
Eligible educators include:
· teachers
· instructors
· counselors
· directors
· kindergarten helpers who worked in a school for at least 900 hours during the school year. Both public and private school educators qualify.
Educators may deduct the unreimbursed cost of:
· Books and other materials used in the classroom.
Equipment, including computer equipment, software and services.
· Protection materials against Covid-19 to stop the spread of disease in the classroom. These include masks, sanitizer to use against Covid-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers such as clear Plexiglas, 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 education tax benefit, especially the lifetime learning credit.
For more details, you can refer to Publication 970, Tax benefits for educationparticularly Chapter 3.
Keep reading:
IRS launches paperless return processing initiative
IRS Eliminates Unannounced Visits by Tax Collection Officials to Taxpayers
· IRS warns that it is going for high-income people who evade taxes
