School supply tax deduction now law

NEA Today, May 2002

For the 2002 and 2003 tax years, K-12 teachers, counselors, and paraeducators--employed for at least 900 hours in a school year--can claim an "above-the-line" tax deduction for the first $250 of out-of-pocket expenses on student supplies. An eligible school employee does not have to itemize to qualify.

The new deduction-yielding a $409 million benefit over two years-is included in the economic stimulus bill signed by President Bush on March 9.

This write-off, backed from its inception by NEA, results from three years of effort by Senator Susan Collins (R-Maine), with help from Senators Mary Landrieu (D-Louisiana) and John Warner (R-Virginia).

"This legislation is important," says NEA President Bob Chase, "because it recognizes that often school employees go beyond their regular responsibilities, purchasing materials so that they can be better at their jobs and more helpful to their students."