Something New for Teachers: A School Supplies Tax Credit

We may be in the dog days of summer, but before you know it teachers will be planning for the fall of 2017, and in the process may be spending their own money to buy new school supplies.

Keeping those receipts is important: some of the expenses may be recoverable on the tax return. Here’s what you need to know: The 2016 tax return introduced a new refundable tax credit for teachers. It’s called the “Eligible educator school supply tax credit” and it was found on new line 469 on page 4 of the T1 General tax return. Be sure you claimed it if you qualified in 2016; otherwise, adjust your return to make sure you get the bigger tax refund you deserved.

Who can claim the credit? It’s available to a taxpayer who is employed in Canada as a teacher in an elementary or secondary school, or is an early childhood educator at a regulated child care facility.

The person must hold a valid and recognized teaching certificate, license, permit or diploma, or a certificate or diploma in early childhood education.

The out-of-pocket expenses, which include consumable supplies and certain durable goods, must be used for the purpose of teaching or learning and must be directly consumed in the school or child care facility by the children. There is no claim permitted if the taxpayer received a reimbursement, allowance or other financial assistance from their employer for these purposes.

The actual value of the credit is 15% of the expenditure, to a maximum credit of $150 for $1,000 spent. A written certificate from the employer must be available to verify that the unreimbursed expenses were used in the classroom, so be sure to keep receipts to show the employer and/or CRA.

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