IRS has important reminder about $300 deduction

The IRS is reminding teachers of a tax credit that could help lessen the burden of supplying their classrooms.

Teachers and other educators can deduct up to $300 in out-of-pocket expenses for 2023 when they file their federal income tax return next year. It’s the second year the deduction has been $300, up from the previous $250, and it could go up in $50 increments in future years based on inflation.

READ MOR: Student loan forgiveness starts for 800,000 borrowers: Here’s who qualifies

Educators can take the deduction even if they file the standard deduction and, if both spouses qualify, the limit rises to $600, though not more than $300 for each spouse. Both private and public-school educators are eligible and the definition of educator is broad: K-12 grade teachers, instructors, counselors, principals or aides who work for a school at least 900 hours during the school year.

Reimbursable materials include books, equipment, including computer software, equipment and services and professional development courses. COVID-19 materials also qualify, including face masks, disinfectant, hand soap and sanitizer, disposable gloves, tape, paint and air purifiers. It’s recommended educators keep receipts, canceled checks and other documentation for purchases.

Have more questions? You can see IRS guidance here.