What are the options for teachers who spend more than $300 ($250 before 2022) on classroom supplies, or for teachers and other qualified individuals who do not meet the 900-hour test or other requirements to claim the abovethe-line deduction? When eligible, teachers should always claim the above-the-line deduction first; then, they should consider the following for the excess. This advice may also help their ineligible colleagues.

One option for years before 2018 and after 2025 is to claim classroom supplies beyond the $300 ($250 before 2022) deduction as employee business expenses on Form 2106. However, employee business expenses are tier 2 miscellaneous itemized deductions, so the expenses might get wiped out or substantially limited by the required reduction equal to 2% of AGI. If the taxpayer is subject to the AMT, employee business expenses are not allowed at all. Caution: Employee business expenses must be a condition of employment verified in writing by the employer; this may be difficult to obtain.

 Another option would be to claim the expenses as a charitable contribution.

Since public schools are part of a political subdivision of a state, any contribution, whether cash or goods, to the school would be a charitable contribution.

Therefore, a teacher’s classroom supplies, if the teacher properly documents them and the school provides written acknowledgment, would qualify as a noncash charitable contribution. Caution: Supplies or equipment that the teacher retains would not be considered a completed gift, and their cost would not qualify as a charitable contribution. For example, if a science teacher purchases a microscope that students use in the classroom but keeps it for personal use when the school year ends, the cost of the microscope would not be deductible as a charitable contribution.

To meet the requirements for noncash contributions, the teacher claiming a contribution to the school must obtain and keep an acknowledgment from the school; the contents of this acknowledgement are based upon the value of the contribution claimed, as explained in chapter 7.08. The acknowledgment must be in the taxpayer’s possession before filing the return for the year the contribution was made or before the due date, including extensions, for filing that return—whichever is earlier. See Chapter 7.08 for charitable documentation requirements.

California has no similar above-the-line deduction so a Schedule CA adjustment for arriving at AGI is required. However, the amount California doesn’t allow above-the-line may qualify as an employee business expense (miscellaneous itemized deduction) for California, requiring a second adjustment on Sch CA.