To amend the Internal Revenue Code of 1986 to increase and adjust for inflation the above-the-line deduction for teachers.
This bill, H.R. 228, would amend the Internal Revenue Code to significantly increase the above-the-line deduction available to elementary and secondary school teachers for unreimbursed classroom expenses. Specifically, it raises the deduction amount from $250 to $1,000 and adjusts certain inflation-related baselines to reflect newer years. The changes are scheduled to apply to taxable years beginning after December 31, 2024 (i.e., starting with the 2025 tax year). The underlying aim is to provide greater tax relief to teachers who spend their own money on classroom supplies, books, equipment, and other approved instructional materials. In addition to increasing the deduction, the bill makes conforming edits to update the inflation baseline references (shifting from 2014/2015 to 2024/2025). While the text indicates an inflation-adjustment objective, the concrete mechanism appears to be a one-time rebaselining rather than a standing automatic annual index, unless further legislation is enacted to continue indexing.
Key Points
- 1Increases the above-the-line deduction for unreimbursed expenses of elementary and secondary school teachers from $250 to $1,000.
- 2Conforming amendments update inflation-basing references: strike 2015 and insert 2025; strike calendar year 2014 and insert calendar year 2024.
- 3Effective date: applies to taxable years beginning after December 31, 2024 (starting with the 2025 tax year).
- 4The deduction remains an above-the-line deduction (reduces adjusted gross income, not an itemized deduction) for unreimbursed classroom expenses.
- 5The bill’s text does not specify a continuous automatic annual inflation adjustment beyond the updated baselines, implying future indexing would require additional legislation to continue.