Teachers - what deductions can you claim?
If you are a teacher or an education professional, you may be eligible to claim some deductions for work-related expenses in your tax return. In this blog post, we will provide you with a guide based on information from the Australian Taxation Office (ATO) about the deductions you can potentially claim and the explanation for each one.
First, you can claim car and travelling expenses if you use your own car or public transport to perform your duties, such as attending meetings, conferences, training courses, excursions or camps. However, you can't claim the cost of travelling between your home and your workplace unless you have to carry bulky equipment essential for your work and there is no secure storage at your workplace.
Second, you can claim home office expenses if you work from home or do some of your classroom preparation and marking at home. You can claim either a fixed rate of 52 cents per hour for each hour you work from home or the actual costs of running your home office, such as electricity, internet and phone bills. You must keep a diary or timesheet to record your work hours from home.
Third, you can claim self-education expenses if you undertake a course of study that is directly related to your current work as a teacher or education professional. For example, you can claim the fees, textbooks, stationery and travel costs for a course that improves your skills or knowledge in your area of teaching. However, you can't claim the costs of a course that enables you to get a new qualification or enter a new profession.
Fourth, you can claim clothing and laundry expenses if you have to wear a compulsory or non-compulsory uniform that is distinctive and unique to your employer, such as a logo-embroidered shirt or jacket. You can also claim the cost of protective clothing that is required for your work, such as gloves, goggles or sun hats. You will need to keep receipts for the purchase and cleaning of these items.
Fifth, you can claim other common tax-deductible expenses that are directly related to earning your income or performing your work, such as:
- Union fees and professional association subscriptions
- Professional development courses and seminars
- Books, journals and magazines relevant to your teaching area
- Stationery, pens, pencils and art supplies
- Computer software and hardware
- Teaching aids and equipment
- Gifts for students or colleagues (up to $300 per year)
To claim any of these deductions, you must have spent the money yourself and not been reimbursed by your employer. You must also keep records that show how you incurred the expense, such as receipts, invoices or bank statements.
For more information on teacher tax deductions, contact us today. Remember, claiming the right deductions can help you reduce your taxable income and pay less tax.