Tax Deduction for Non-Reimbursed Classroom Purchases

Background
Great schools depend on great teachers and staff. With schools struggling with rising education costs and revenue caps, teachers are opening up their own pocketbooks to provide needed supplies for the classroom.

Attracting and retaining the best and the brightest to the teaching profession is more difficult when classrooms lack basic supplies and teachers must resort to their own financial resources to fill the need.

Legislative History

Under federal law, teachers and other educators can deduct up to $250 that they spend to buy classroom supplies. While this provision was set to expire at the end of the 2003 tax year, Congress renewed it for the 2004 and 2005 tax years.

Prior to this change in federal law, such school expenditures could be claimed only if they were included as miscellaneous itemized deductions. Even then, the expenses were useless unless they and all other allowable costs totaled at least two percent of the filer's adjusted gross income.

No comparable tax deduction exists under state law.

WEAC Position

The Wisconsin Education Association Council supports legislation providing an individual income tax deduction for an amount up to $500 that is paid by a classroom teacher each year for educational materials or supplies for use in school.

Talking Points

• Teachers frequently dig deep into their own pockets to cover shortfalls in classroom supplies, supplemental materials and classroom necessities, adding up to hundreds of dollars every year. A 2003 WEAC membership survey showed that teachers spend an average of $325 annually out-of-pocket to provide classroom supplies.
• For newer teachers at the lower end of the pay scale, relying on their own resources to pay for supplies is particularly burdensome.
• A teacher tax deduction recognizes teachers' dedication and sacrifice and helps them cover their personal expenses to educate our children.

Additional Information

Contact Deb Sybell, WEAC Legislative Program Coordinator, at 800-362-8034 ext. 227 or by e- mail at sybelld@weac.org with any reactions, comments or questions.

Posted May 4, 2006