Summer is coming to a close and the back-to-school
advertising blitz is underway. Hidden in some of those school expenses are
tax deductions you can take advantage of. Here are some ways you can save:
- Watch for tax deductions on the
supply list. Schools
often send a list of requested supplies for the school year. Some of
the items on the list are clearly for personal use (such as an eraser
or a ruler) while other items on the list are often for school use and
classroom use (such as 24 pencils or paper towels). Keep track of
these non-cash classroom/school donations for possible charitable
deductions. Or even better, donate cash.
- Donate funds versus taking the raffle
ticket. Raffles, subscription
drives and silent auctions are fun ways schools raise money. To
maximize your ability to deduct your donations, forgo the possible prize.
Then the entire donation is clearly deductible. Remember to ask for a
receipt when making the donation.
- Don’t forget your out-of-pocket
expenses for your volunteer activities. Perhaps you donate your time at school functions,
donate books to the school library, or help assist the teaching staff.
Your out-of-pocket expenses and mileage should be tracked for
charitable deduction purposes.
- Teachers, save your out-of-pocket
expenses. A
recent survey found that 94 percent of teachers spend their own money
on classroom supplies — some as much as $1,000 per school year. On
your 2022 tax return, teachers are allowed to deduct $300 on their tax
return even if they claim the standard deduction. If you’re married,
you can deduct up to $600 of classroom supplies.
- Use checks, not cash. If you usually provide donations to the school in
the form of cash (like providing additional money to help other kids
go on field trips) make those donations in the form of a check. The
check will serve to help prove your donation.
Finally,
don’t forget to review state rules for educational expenses. There are
often credits available for out-of-pocket school and other educational
expenses.
Correction: Please note the
above-the-line deduction for charitable contributions is currently NOT
available for the 2022 tax year. This provision expired at the end of 2021.
Last week’s Tax Tip dated 7/29 did not reflect this change. Sorry for any
confusion or inconvenience.
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