To amend the Internal Revenue Code of 1986 to increase and adjust for inflation the above-the-line deduction for teachers.
Impact
The proposed amendments to the tax code will particularly benefit elementary and secondary school teachers. This increase in the deduction will allow educators to claim a more substantial amount on their tax returns, which could lead to a meaningful uplift in their take-home pay. Effective from taxable years beginning after December 31, 2022, the adjustment is a timely response to the financial pressures teachers face, especially in light of post-pandemic educational demands.
Summary
House Bill 6701 aims to amend the Internal Revenue Code of 1986 by increasing the above-the-line deduction for teachers from $250 to $600. This change is designed to provide additional financial relief for educators who are often responsible for purchasing classroom supplies out of their own pockets. By adjusting the deduction for inflation, the bill seeks to ensure that the financial assistance keeps pace with rising costs, thereby helping teachers manage their expenses more effectively.
Contention
While the bill reflects a positive step toward supporting educators, there may be discussions around its broader implications on state funding for education. Some stakeholders could argue that instead of offering tax deductions, there should be a focus on improving direct funding to schools. Critics may express concern that relying on tax adjustments provides only superficial relief and does not address underlying issues within the education system, including salary inequities and resource shortages.
A bill to amend the Internal Revenue Code of 1986 to increase the deduction for certain expenses of elementary and secondary school teachers and to allow an equivalent deduction for home educators.
This bill increases the above-the-line tax deduction for unreimbursed expenses incurred by an eligible educator for classroom supplies and certain professional development courses. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)Under current law, an eligible educator may deduct up to $300 in 2025 (adjusted annually for inflation) for unreimbursed expenses for classroom supplies and certain professional development courses. An eligible educator is defined as a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who works at least 900 hours during a school year in a school that provides elementary or secondary education. Under the bill, an eligible educator may deduct up to $1,000 in 2025 for unreimbursed expenses for classroom supplies and certain professional development. For tax years after 2025, the $1,000 limit on the tax deduction is adjusted annually for inflation.