It’s an improvement, nonetheless.
Legislators have opted to maintain the tax deduction for teachers who use personal funds for classroom supplies, reaching a compromise between differing proposals.
Presently, educators can deduct up to $250 for classroom materials from their taxable income. This applies to both those who opt for the standard deduction and those who itemize their deductions.
The deduction will remain unchanged if the House and Senate pass their joint tax bill as it stands. Votes are anticipated next week.
Last month, the House approved a bill that aimed to eliminate the deduction, while the Senate’s version sought to increase it to $500.
The tax benefit for teachers helps alleviate the expenses many incur on supplies like paper, scissors, and posters from their own pockets each academic year.
A survey conducted by education publishing company Scholastic in 2016 found that teachers on average spent $530 of their own money in the previous year, with those at high-poverty schools spending an average of $672.
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Sonia Smith, president of the Chesterfield Education Association in Virginia, expressed that raising the deduction to $500 would have been beneficial.
“That aligns more closely with the typical expenses of my colleagues,” said Smith, a high school English instructor. “For elementary school teachers, the costs are often significantly higher.”
Smith noted that teachers often must spend their personal funds on classroom decorations and essential supplies, such as pencils, pens, and highlighters.
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The financial impact of the deduction on the federal budget is relatively minor. The Treasury Department estimates that the deduction reduced federal tax revenues by approximately $200 million in the 2017 fiscal year.
While the tax break remains intact, the National Education Association continues to oppose the overall bill.
“Clearly, Congress listened to the concerns voiced by educators and parents when House Republicans attempted to abolish the $250 deduction for school supplies,” stated Lily Eskelsen García, the association’s president. “However, the broader GOP tax bill includes substantial benefits for corporations and the affluent. It’s disgraceful that working families will ultimately bear the cost of this bill.”
