Indiana teachers can use state credit, federal deduction to recoup out-of-pocket classroom costs

According to a national survey from the nonprofit AdoptAClassroom.org, teachers had an average budget of $200 to spend last year for classroom expenses. The survey also showed that teachers spent an average of about $860 on classroom supplies last year, with the difference coming out of their own pockets.

AdoptAClassroom.org said 93 percent of teachers supplemented their classroom budget with their own money to buy necessary supplies for their classrooms. Between state tax credits and federal deductions, however, educators in Indiana could recoup as much as $400 each year to help cover the cost of personally supplying materials for their classrooms.

Educators who work for a public K-12 school in Indiana could receive up to $100 in state tax credit for certain classroom supplies. According to the Indiana Department of Revenue, this credit can be claimed by teachers, librarians, school counselors, principals and superintendents.

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Some educators can also deduct up to $300 worth of unreimbursed trade or business expenses on their federal taxes. This can be used for expenses like books, computer equipment and professional development. It can also be used for disinfectant and other supplies to prevent COVID-19 from spreading.

The Internal Revenue Service specifies that educators teaching health or physical education can only apply for deductions on athletic supplies.

The IRS requires educators to work at least 900 hours per school year in state-accredited elementary or secondary schools to receive the deduction. Eligible educators include teachers, instructors, school counselors, principals, and aides.

Educators can visit the IRS and Indiana Department of Revenue’s websites to learn more about state tax credits and federal tax deductions for teachers, as well as the requirements for each.

Kirsten is the education reporter for Indiana Public Broadcsting. Contact her at kadair@wfyi.org or follow her on Twitter at @kirsten_adair.

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