It’s a step in the right direction.
Lawmakers have opted to preserve the tax deduction for teachers who use their personal funds for classroom supplies, effectively reaching a compromise between differing proposals.
At present, teachers can deduct up to $250 for classroom expenses from their taxable income, applicable to both those taking the standard deduction and those itemizing.
This deduction will remain unchanged if the House and Senate approve their reconciled tax bill as it currently stands, with votes anticipated next week.
Last month, the House voted on a bill aiming to eliminate this deduction, while the Senate proposed a plan to increase it to $500.
This tax relief for educators helps mitigate the significant out-of-pocket expenses many teachers face each year for items such as paper, scissors, and posters.
A 2016 survey conducted by education publisher Scholastic revealed that teachers spent an average of $530 of their own money over the past year. Those teaching in high-poverty schools reported an average expenditure of $672.
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Sonia Smith, president of the Chesterfield Education Association in Virginia, stated that an increased deduction of $500 would have been beneficial.
“That amount is much closer to what most of my colleagues spend,” remarked Smith, who teaches high school English. “And for elementary teachers, it’s often much higher.”
Smith also highlighted how teachers are often required to spend their own money on classroom decorations, as well as essential items like pencils, pens, and highlighters.
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The financial impact of the deduction on the federal budget is minimal. The Treasury Department estimates that the deduction reduced federal tax revenue by about $200 million during the 2017 fiscal year.
Although the tax break will remain, the National Education Association continues to oppose the bill.
“Clearly, Congress listened to the concerns raised by educators and parents when House Republicans sought to eliminate the $250 deduction for classroom supplies,” stated Lily Eskelsen García, the association’s president. “However, the overall GOP tax bill is rife with benefits for corporations and the affluent. It’s unacceptable that working families will bear the cost of this legislation.”
