The TUTOR Act creates a new temporary nonrefundable tax credit for eligible teachers who provide tutoring outside normal school hours. The credit is calculated as $500 plus a supplemental amount tied to how many tutoring hours beyond 150 a teacher provides in a year, up to a maximum total credit of $1,000. Eligible teachers must work at preschools, elementary schools, or secondary schools, be state-certified/licensed, and deliver at least 150 hours of qualified tutoring to students at the same type of school they teach. Qualified tutoring must occur when school is not in session and focus on math, reading/writing, or science. The credit applies to tax years beginning after December 31, 2025, is capped and temporary (ending after December 31, 2032), and requires annual reporting to Congress. Married couples filing jointly can claim the credit separately for each eligible spouse. Regulations and guidance will be issued by the Secretary of the Treasury.
Key Points
- 1Creates a new Sec. 25F “Tutoring Credit” that allows an eligible teacher to claim a tax credit against their tax liability.
- 2Credit amount: $500 baseline plus a supplemental amount, with a maximum total credit of $1,000 per eligible teacher per year.
- 3Supplemental amount: proportional to hours of qualified tutoring beyond 150 hours, calculated as a ratio of the excess hours to 50 hours, capped so the supplemental amount does not exceed $500.
- 4Eligible teacher definition: a licensed teacher at a preschool, elementary, or secondary school who provides at least 150 hours of qualified tutoring to students at the same type of school.
- 5Qualified tutoring: academic tutoring outside regular school hours (when school is not in session) focusing on math, reading/writing, or science.
- 6Special rule for married couples: the credit is treated separately for each spouse who is an eligible teacher on a joint return.
- 7Regulations: the Secretary must issue regulations or guidance as needed.
- 8Termination: no credit for tax years beginning after December 31, 2032.
- 9Reporting: an annual Treasury report to Congress on usage, hours, and geographic distribution for years when the credit applies.
- 10Effective date: applies to taxable years beginning after December 31, 2025.