Budgeting for school expenses is a normal part of the autumn season for most families. But what a lot of people forget is that some of those costs and school donations can actually go toward some deductions on your tax return. Every bit counts!
5 Tax Deductions for School Expenses
It always helps to run through these tax deduction strategies before the official tax season rolls around. The five scenarios listed below can easily get overlooked, and you won’t want to miss out. And if you’re looking for personalized tax planning help along the way, our team is always happy to connect!
1. Your School Supply List
When you have required school supplies on your shopping list, a portion of those items can usually go toward deductions. While supplies for personal use, like a new eraser or a ruler for your child, can’t go toward those write-offs, the supplies you’re purchasing for general classroom use will fall into another category. If you’re being asked to buy no. 24 pencils or paper towels to stock up the class supplies, those non-cash purchases might be able to be counted toward your year’s charitable donations.
2. School Donations
Another type of spending to track are your actual school donations! An upcoming school raffle or silent auction can be fun ways for a school to raise money. But to claim a deduction, consider foregoing those “wins” for a formal donation and receipt—which will be clearly deductible.
3. Volunteer Expenses
Parents who volunteer for school activities can also claim deductions. Your out-of-pocket expenses for that mileage to and from the event can be tracked and calculated as another charitable deduction.
4. Teacher Out-of-Pocket Spending
Surveys continue to show that well over 90% of teachers are put in a position of spending their own money on their classroom supplies. All of those little purchases add up, which is why it’s so important to claim your deduction. The 2022 tax code allows teachers to deduct $300 on their return for classroom supplies—even if they’re claiming the standard deduction. And if you’re married, you’ll be able to deduct up to $600.
5. Remember to Use Checks
We might sometimes be tempted to just donate cash to the school. But it’s better to send that money via check. That way, you’ll be able to prove your deduction for any donations, like contributing to another student’s costs for a field trip or their individual school supplies.
Get All the Tax Deductions You’re Owed
Every state has different rules for how your educational expenses will affect into your tax return. The more you know, the more you’ll be able to keep in your pocket!
NSO & Company serves families, individuals, and small business owners all throughout Central Indiana. And we’re always looking to help our clients keep their tax liabilities low. Whether you’re an existing client or just looking for a tax review, please don’t hesitate to reach out! We’d love to schedule a tax planning consultation with you to make sure everything is on track.
