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Tax Breaks for Teachers

5 Tax Breaks for Teachers on World Teachers’ Day (300 × 534 px)

While teaching is a very noble profession, sometimes it can be difficult and, at times, financially draining. However, the good news is that there are some tax benefits that teachers may qualify for. For all the teachers out there, here are a few benefits that can lighten your financial load.

1. Educator Expense Deduction & Union Dues

It’s common for many teachers to pay out of their pocket for a portion of their classroom supplies and purchases here and there throughout the year can quickly add up. However, the good news is that you may be able to deduct some of these expenses at tax time!

In 2024, eligible teachers can deduct up to $300 in unreimbursed classroom expenses. If you and your spouse are both teachers and are filing jointly, you can deduct $600 (but not more than $300 for each of you). To qualify, you have to:

Expenses that are deductible:

Make sure you keep all of your receipts! A suggestion for managing your receipts would be to scan them and have a digital copy on file. This makes it easier to save, organize, and reference when it’s time to figure out the correct amount of your deduction.

It is important to note that union dues cannot be deducted through the educator expense deduction. Prior to the Tax Cut and Jobs Act, you used to be able to claim dues as unreimbursed employee expenses if you itemize your deductions. However, that deduction got eliminated with the Tax Cut and Jobs Act of 2017.

2. Lifetime Learning Credit

If you’re taking classes, you may also get to take advantage of the Lifetime Learning Credit for your tuition, books, and necessary equipment. If you qualify, you can claim up to $2,000 per tax return. 

This credit is available for any post-secondary classes you take at a qualifying school. Generally, you do not have to be working toward a degree and can deduct courses taken to get or improve job skills. You can include the cost of tuition, fees, and any books or supplies you are required to purchase as a condition of enrollment.

3. Deduction for Volunteering?

Most teachers I’ve met have extremely giving hearts, and it’s not uncommon to see them spend extra time helping out their students and around the school. If you’re a teacher, I bet you’re wondering, can I get some tax benefits for this volunteer work? The answer depends on whether it meets the specific guidelines set by the IRS. 

First, you should verify whether the charitable organization you’re volunteering for is qualified and recognized by the IRS as a 501(c)(3) exempt organization. If so, you may be able to deduct some of your expenses as part of your charitable contribution deduction if you itemize your deductions. Here are some of the items that may be deductible:

4. Home Office Deduction

If you freelance, rather than teach as an employee of the school district, you may be able to take the home office deduction. Your home office must be exclusively used for your education work, and it must be either the principal location of your business or a place where you regularly meet with your students. While most teachers won’t qualify, certain specialists may be able to use this tax break.

5. Thoughts on Tax Breaks for Teachers

There’s so much teachers do both inside and outside the classroom. I hope these tax breaks make things a bit easier when it’s time to file. 

Thank you, teachers! 

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