Preschool Teachers Cut Off from Tax Incentives

The annual tax season rush is over. As the dust settles, we want to make more people aware of the disadvantage preschool teacher’s face regarding income tax. For K-12 teachers, there are a number of tax incentives related to spending money to enhance learning in their classrooms. Why these same incentives don’t apply to preschool teachers seems to defy logic. Preschool teachers are low on the education ladder. Many people see them as mere babysitters. Yet the work they do is basic brain development. They are grossly underpaid for this essential, critical and valuable work. Many teachers pay out of pocket for items used in their classrooms. Often these items are not part of the school budget. School budgets are being cut everywhere.

It is significant many teachers call their students “my children” or “my kids.” On a daily or weekly basis, preschool children have more interactive contact with their teachers than their parents. Good preschool teachers who nurture, foster, protect and enrich playfulness and curiosity are worth their weight in gold. Dedicated teachers face growing classroom expenses. They will be confronted the hard decision: spend money for their classroom at the expense of their own families.Which would you choose?

Time and time again, dedicated preschool teachers spend their own money to enhance their classrooms. This attests to the professionalism and dedication of preschool teachers. The IRS recognizes the value of teachers spending their own money to enhance their classrooms. Teachers can deduct some these expenses on their income tax. To qualify for the federal tax deduction teachers must work over 900 hours a year in a primary or high school.  But preschool teachers are excluded.

[Note: We are not tax experts. Please consult with your tax preparation specialist.]

The status quo begs the questions:

1. Why are preschool teachers excluded from the IRS Educator Expense Deduction?  [Note: Qualified teachers can deduct up to $250 of expenses that they do not have to itemize.]

2. Can preschool teachers take an itemized deduction for these expenses? Without The Educator Expense Deduction, preschool teachers can claim unreimbursed employee expenses by itemizing these deductions on Schedule A.  However this is subject to the 2% rule. This means they can only deduct expenses which are in excess of 2% of their adjusted gross income (AGI). For example, if a preschool teacher’s AGI was $24,330, they can only deduct out of pocket classroom expenses which are above $486.60. If a teacher spent $750 out of pocket, they can only deduct $263.40 or 34.7% of their actual expenses. How many of you would spend this kind of money on your job? And remember, the teachers are spending this money on YOUR children.

S.E.E.D.S. cannot solve the school budget problem, nor can we change IRS tax policies. But there are grassroots actions that can be done to help preschool teachers. The children’s parents have the most direct contact with the teachers. Some parents remember the preschool teachers with prepaid gift cards (for school supply vendors) which puts money in the teacher’s pocket. It’s the teacher’s choice to spend the money for their classroom or not.

There are other direct actions to supplement classroom spending. The following suggestions comes from spirit of the S.E.E.D.S. slogan “It is better to network than to not work.”  [Note: Money has an insidious way of being diverted and misused. At the very least, even the appearance of inappropriate or suspicious acts creates problems. This can best be avoided by the parents of donors buying the classroom items the teacher needs.]

1. Business Owners & Parents: Get a list of needed items from the teacher. Buy and donate these items to the teacher. We are talking about crayons, markers, construction paper, glue, etc.

2. Collect left over supplies to give to teachers: When times are tough, the choice between new crayons and markers and left overs is moot. In some cases, using left over crayons may be better that not having any crayons at all. The reality in most classrooms is that brand new crayons turn into well-used ones very quickly anyway.

3. Parents Organize to Support a Teacher: Parents can organize fund raisers: bake sales, garage sales, or other seek out national chain restaurants who pay a % of patron receipts to your cause. The money can be used to buy things on the teacher’s list of needs. This approach minimizes misunderstandings about how the money was used.

4. Approach Local Civic Groups: Some parents may be members of a local civic group (Chamber of Commerce, Lions, Kiwanis, Rotary International, etc.). Even if they are not members, parents can approach these groups with a request to help support local preschool teachers out of pocket expenses for their classrooms.

Someone once said “Children are great imitators. So give them something great to imitate.” Consider the great example you can set for your children by giving your leftover crayons, markers, and other common school supplies to the preschool teacher of your children. Ponder the valuable lesson you instill in them with grassroots community action. People working together to overcome difficulties is a fundamental act of humanity. Do small and simple things daily to help your children become good decent human beings.

If you have other suggestions or experiences to share, please make a comment on this blog. Remember, it is better to network than to not work. We all seem to know the problems exist. We now need to pull together to try to find effective solutions.