You might be wondering what tax breaks are available as a teacher. But with the complexity of the tax code and recent tax reform, it’s easier said than done to find them. In the next minute, we’ll cover the ones we’ve found are most important for our teacher clients.
First, there’s the Educator Expense deduction. It’s available for up to $250 of the out-of-pocket expenses you spent on your classroom last year. If you’re a two-teacher household, both of you can claim it.
Second, several states have their own version of the Educator Expense deduction, so you don’t want to miss out on it. For example, in our home state of Indiana, the deduction is up to $100.
Third, there’s the Student Loan Interest deduction. It’s available for up to $2,500 of interest you paid on your federal or private student loans last year.
Fourth, for teachers pursuing an advance degree, there’s the Lifetime Learning Credit. It’s available for up to 20% of higher education expenses, up to $2,000.
Each of these tax breaks are subject to specific rules and potential income limits we weren’t able to cover here, so it’s important to always check the specifics before you file your tax return.
If you’d like to learn more about these tax breaks and how the fit into your financial planning as a teacher, feel free to give us a call or drop us an email.