Like many professionals, teachers often pay for work related expenses out of their own pockets without any reimbursements. In most cases, these items can become valuable tax deductions for teachers. As a teacher, the tax deductions you claim back can significantly improve your tax refund –if you know what you’re doing. You just need to get into the rhythm of a few good habits.
Many of ourclientsthink that keeping receipts for expenses incurred is a crucial element in preparing their tax return. Well we hate to burst your bubble, but it really is the crucial element. Keeping receipts will allow you to keep a record of what you have spent and when.
Many teachers struggle in keeping their receipts togetherdue to the overwhelming environment of teaching. One of the best ways to stay on track with your receipts is to take a photo of them using the ATO app which allows you to store all your receipts, put all your receipts in a folder or you can even create your own personalized excel spread sheet.
Many teachers miss out on valuable tax deductions because of bad record keeping. Good record keeping can be the difference maker in your tax refund, you don’t want to miss out on a great refund which you are very much entitled to due to having lost receipts.
The top tax deductions for teachers:
- Teaching Supplies: materials or resources that were not paid for or reimbursed by the school
- Teaching registration fees and related costs
- Self –Education that relates to your current teaching role
- Some travel and meal expenses
- Relevant travel expenses (Motor Vehicle use)
- Union or membership fees
- Home internet bill
- Phone expenses
- Hat and sunscreen when working outside with students
“Can I claim some home office expenses because I do some overtime work at home?”
Many teachers would need to take their work home at some point in their career. If you are one of those teachers that does some work from home, there’s an opportunity to claim a deduction for it depending on how often you work at home.
To find out more in detail on how you can claim home office expenses please have a read of our article on home office expenses “HOW TO BOOST YOUR TAX REFUND BY CLAIMING HOME OFFICE EXPENSES”.
“I incurred some expenses while I was on a school excursion, are these costs tax deductible?”
BFS Partners have heard this question on several occasions, and the answer is ‘YES’. Travel and other costs for day trips and excursions are often a common expense for teachers. Make sure you keep a record of all of them. These includes costs such as meals, transport and accommodation unless the school has paid for them or you have been reimbursed.
You may also be entitled to claim a deduction for personal items if you use them for work purposes. For example: a portion of your mobile phone expenses and the coasts of work related personal car use which maybe used for excursions, picking up materials for the classroom or picking up and dropping kids off at home if their parents give you consent.
The moral of the story is great record keeping will give you a great tax refund.
If further advice is needed,please don’t hesitate to drop us anemail at advice@bfspartners.com.au.