For the first time in 20 years, the Internal Revenue Service is increasing the deduction limit for the amount of money teachers spend on school supplies, the agency has announced.
Teachers will now be able to deduct up to $300 of out-of-pocket classroom expenses in 2022, up from the $250 that has been set since the incentive first started in 2002.
"The limit will rise in $50 increments in future years based on inflation adjustments," the IRS said.
Eligible educators include K-12 teachers, principals, teachers' aides or counselors who spend more than 900 hours at the school during the academic year. Public and private school educators can benefit.
Eligible educators who are married to another eligible educator and file a joint tax return can deduct up to $600 in qualifying expenses, but still no more than $300 per spouse. Educators who do standard deductions also qualify.
The limit is still $250 for those who are filing their 2021 taxes.