To All The Teachers Out There

There are two credits that you should be aware of:

1) Teacher and early childhood educator school supply tax credit

2) B.C. education coaching income tax credit

Teacher and early childhood educator school supply tax credit:

Overview: If you are an eligible educator, you are able to claim up to $1,000 in eligible teaching supplies that you paid for out-of-pocket (you cannot be reimbursed for them) during the tax year.

Amount: The lesser of $1,000 and the actual expenses incurred, multiplied by 15% (federal only). If you incurred $2,000 in expenses, your taxes payable would decrease by $150 (1,000*15%). The only province that has an additional provincial credit is PEI.

Details: Eligible educators include teachers at elementary and secondary schools as well as early childhood educators at regulated child care facilities. The individuals must hold a valid teaching certificate, license, permit or diploma, or a certificate or diploma in early childhood education in the province/territory that they are employed.

Eligible teaching supplies must be purchased for teaching or assisting in the students’ learning and be used during the course of employment as an eligible educator. Examples would include arts and crafts supplies, supplies used in science experiments, etc.

Click here for more information on this credit.

B.C. education coaching income tax credit:

Overview: Non-refundable tax credit for teachers and teaching assistants that volunteer at least 10 hours of extracurricular coaching activity during the year.

Amount: The credit is $500 multiplied by 5% (provincial only). If you qualified for this credit, your taxes payable could decrease by $25.

Details:

· Principals and vice-principals are eligible for the credit.

· You cannot be paid for the coaching and it must be done after school hours or on the weekend.

· The extracurricular activities can include sports, arts and other activities.

· The supervision must relate to students of a qualifying school. Preschools are not considered a qualifying school (only kindergarten and up).

Click here for more information on this credit.

Note: Information has been summarized for ease of understanding. There are always exceptions to tax rules. Contact Zachara Accounting if you want assistance in preparing your return.