The Tax Deduction for Classroom Expenses of Elementary and Secondary School Teachers

Publication Date: December 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance; Education

Type:

Abstract:

An above-the-line deduction for certain classroom expenses paid or incurred during the school year by eligible elementary and secondary school (K-12) teachers, among other educators, was authorized in the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147). Some 10 months after the temporary deduction's expiration, the Working Families Tax Relief Act of 2004 (H.R. 1308) was passed and signed by the President (P.L. 108-311); the act extended the educator classroom expense deduction from its expiration date of December 31, 2004 to December 31, 2005. Both H.R. 4297 and S. 2020, which the House and Senate recently passed, would extend the educator classroom expense deduction for one year through December 31, 2006. This report describes the income tax deduction, its interaction with other provisions in the Internal Revenue Code, and current proposals concerning the income tax benefit for eligible educators. It will be updated as legislative activity occurs.