Tax tips for teachers

The following information is not to be taken as taxation advice. You should consult a tax advisor for all tax-related matters.

It’s that time of year again—the countdown to tax time has begun. Ask any teacher and they will tell you that plenty of teaching-related expenses throughout the year come directly out of their own pockets. But which ones exactly are tax deductible?

We’ve spoken to the Australian Taxation Office (ATO) about what those working in the education sector can claim, compared to what is considered a private expense.

What you may be able to claim

When it comes to working out whether an expense is tax deductible, there are three things you’ll need to consider:

1. Have you spent the money yourself and not been reimbursed by your employer?

2. Does it directly relate to the earning of your income?

3. Do you have a record to prove it?

If you can answer “yes” to all of the above questions, then it is likely that the expense is tax deductible. Keep in mind that if the expense was for both work and private purposes, you can only claim a deduction on the work-related portion.

What you can’t claim

If your employer has reimbursed you for an expense, then this is not a tax deductible item. The ATO can seek information from your employer if it suspects you have claimed a deduction on an expense for which you have already been reimbursed.

Below are some of the tax deductible items that you may be able to claim as a teacher:

1. The cost of teaching aids

Whether it’s class handouts, videos and audio tapes, musical instruments or sports equipment, the cost of paying for teaching supplies can add up. The good news is you can claim a deduction for the cost of teaching aids, to the extent that you used them for work.

However, you can’t claim a deduction for any items you have supplied to students for their own personal use. This includes gifts and paying for lunch for students.

2. Home office expenses

How many nights and weekends have you spent marking assignments at home and coming up with lesson plans?

It’s important to keep a diary of those hours, as work performed from your home office could be a tax deductible expense, even if the room is not set aside solely for work-related purposes. Special rules apply so check the ATO’s website to work out your claim.

3. Clothing and laundry

If you are required to wear a uniform or occupation-specific clothing, then this could be another deduction to add to the list. However, “plain uniforms” or “conventional clothing” are not applicable for a deduction and are instead considered a private expense.

For instance, if you are a physical education teacher you may wear sports clothes, such as tracksuits, shorts and aerobic shoes to work but these items are not tax deductible—even if your employer requires you to wear them, and even if you only wear them to work. On the other hand, a design and technology teacher required to wear protective gear, such as goggles, gloves and hard hats, may be able to claim those items if they have had to buy and/or wash them themselves.

4. Car expenses

Generally this is not a tax deductible expense, as normal trips between your home and work is considered a private expense.

However, it is still worth speaking to your tax accountant about this expense. You may be able to claim a deduction on transporting students for school excursions or carrying sizable work-related equipment in your car that can’t be stored securely at your workplace.

For more information on what expenses you can claim visit the ato.gov.au/occupations or have a chat with your tax agent.