#COVID TAX WRITE OFFS PLUS#

State Sales Tax Deduction. Educators may also benefit from the state and local sales tax deduction (an alternative for states with no state income tax to deduct from federal taxes) even though those breaks don’t target them specifically. Even if you aren’t required to file a federal tax return, doing so will help you recover these payments. If you didn’t file federal taxes in 2019, you may have missed getting stimulus payments. The Recovery Rebate Credit for both rounds can be claimed on your 2020 tax return even though many of the payments were made in early 2021. Eligibility in both rounds was an adjusted gross income less than $75,000 ($150,000 for married), though phased-out partial payments were made above those amounts. The second round was $600 ($1,200 for married) and $600 for each child.

#COVID TAX WRITE OFFS PLUS#

The first round of stimulus was a payment of $1,200 for individuals ($2,400 for married filing jointly) plus $500 for each qualifying child. This is not limited to educators, but like the educator expense deduction, it enables you to reduce your AGI.ĬOVID-19 Recovery Rebate Credit. Those eligible for economic impact payments (also known as stimulus checks), but who did not receive all or part of them, may claim the Recovery Rebate Credit. That means that even if you don’t itemize, you can deduct up to $300 for donations to 501(c)(3) public charities, and the cap applies to both individuals and those married and filing jointly. COVID-19 relief funds and deductionsĬharitable Donations Deduction. The 2020 CARES Act for COVID-19 relief provided another above-the-line deduction. There are a few states that do still allow it if itemized expenses are higher than the standard deduction, but North Dakota is not one of them.

The 2017 Tax Cuts and Jobs Act eliminated that deduction. Teachers may count expenses for buying personal protective equipment (PPE) for the classroom-masks, sanitizer, Plexiglas, etc.-purchased after March 12, 2020, when claiming the $250 classroom supplies deduction.Īs tempting as it may be to try, educators cannot deduct a dedicated home office or unreimbursed expenses above $250-at least on federal returns. This above-the-line deduction has become even more important since the 2017 tax reforms, which virtually doubled the standard deduction, setting the threshold even higher for choosing to itemize.Ĭlassroom supplies may look a bit different this year, thanks to the pandemic. If both spouses filing jointly are educators, each can claim the deduction, for a total of $500. Legislation in 2015 indexed the deduction amount to inflation, but it remains unchanged at $2. This deduction is particularly advantageous because it’s above the line on Schedule A, which means you don’t have to itemize to take it and it reduces your overall adjusted gross income (AGI). The $250 above-the-line deduction for classroom supplies is still available for the 2020 tax year. Here’s a rundown of what’s changed and what’s stayed the same for the 2020 tax year, as well as how you can make sure you receive all the coronavirus relief funds you’re entitled to.

Add to that confusion around stimulus checks and tax deductions.

The pandemic has upended how and where many educators work, adding technology and PPE expenses and shifting offices between school and home. The past year has been particularly stressful on the mind, body and budget.

Covid tax write offs