2025 Tax Changes

For the 2022 tax year, teachers and other educators who dig into their own pockets to buy books, supplies, COVID-19 protective items, and other materials used in the classroom can deduct up to $300 of these out-of-pocket expenses ($250 for 2021).

An “eligible educator” is anyone who is a kindergarten through 12th grade teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year. Homeschooling parents can’t take the deduction.

Bettering yourself or your children through education is a good thing, and it’s even better when you get a tax break.

The American Opportunity Tax Credit (AOTC) is a partially refundable credit that pays for education expenses for students in the first four years of college. You can claim up to $2,500 per student — and if the credit brings your tax bill to zero, 40% (up to $1,000) is refundable.