TEACHER TAX CREDIT IN JEOPARDY:

In 2002, Congress passed legislation giving teachers a $250 federal tax deduction for out-of-pocket expenses for instructional supplies teachers purchased for their classrooms. The legislation represented an acknowledgment that teachers are spending their own money to supply and equip their classrooms. The deduction has been extended several times, but last year the bill was approved so late in the process, that the 1040 forms were already printed without the line item deduction leaving many teachers unaware that the deduction still existed. The current deduction is set to expire at the end of the 2007 tax year. Making this deduction a permanent one on the federal tax form 1040 would give teachers more of an incentive to stay in their field. 

Representative Camp (R-MI) has introduced the Teacher Tax Relief Act (H.R. 549), which would make the deduction permanent, increase it to $400, and expand it to cover professional development expenses. Senators Collins (R-ME) and Warner (R-VA) have introduced the companion Senate bill (S. 505). In addition, there are several other bills being considered:

Teacher Tax Credit of 2007 (S. 1727): Credit is new 50% of the expenditures for professional development and classroom supplies not to exceed $300 also would be permanent.

Teacher Tax Credit of 2007 (H.R. 2287): Credit is new - not specific as to what it can be taken for, amount is $2,000 and would be permanent.

Educator Expense Deduction Act of 2007 (H.R. 3605): Make the deduction permanent, expand to $500 and includes classroom supplies and professional development.

NSSEA is urging that these bills be passed in time to allow the IRS to place this deduction or credit on the 2007 tax forms as last year many educators were unaware of the deduction due to the deduction not being part of the tax form.

Click here to see a sample of the letter sent to members of the Senate Finance Committee and House Ways and Means Committee on behalf of NSSEA.

Click here to partner with the National Education Association (NEA) to show your support of the Teacher Tax Relief Act.

Member Resources:

Download these materials in support of the Teacher Tax Credit:

Bag stuffer/Newsletter Copy
Senate Letter Template
House Letter Template
Store/Cash Register Sign
NSSEA Press Relief from Hill Visits