Teaching supplies can be expensive and while many schools provide the essentials, teachers are often expected to contribute their own art supplies, educational decor, puzzles/games and similar items. While these items may not be seen as essential to a child's education they are important in providing students with a positive learning environment.
It's for this reason that the Government of Canada has decided to reward the generosity of teachers and educators across Canada with a new tax credit called the Teacher and Early Childhood Educator (ECEs) School Supply Tax Benefit.
The tax credit will help to offset the cost of classroom supplies that teachers pay for out of their own pocket and will be available to certified teachers and early childhood educators.
Specifically, teachers and ECEs will be able to claim a 15% refundable tax credit on up $1,000 worth of eligible school supplies, no matter their income. That equates to a credit of up to $150 dollars per year.
But, as with every tax credit or deduction, the teachers and educator's will have to meet several eligibility requirements.
Firstly, to be eligible for the credit, teachers must have a teacher’s certificate that is valid in their province or territory of employment. Similarly, early childhood educators must have a certificate or diploma, recognized by their province or territory of employment, in early childhood education.
For the teaching supplies to be eligible they must be purchased for teaching or facilitating learning, and they must be used in an elementary school, secondary school or regulated child care facility in the performance of the teacher’s duties. It is also improtant to note that the expense must be claimed in the year that it was incurred, not the year in which the supplies were used.
The expense will not be eligible if it is a reimbursable expenses that's paid for by an employment allowance, unless the allowance or reimbursement is included in the teacher’s income and not deductible.
You are also unable to claim the teaching supplies, as part of the Teacher and Early Childhood Educator (ECEs) School Supply Tax Benefit, if the expense was used in the calculation of another credit or deduction.
Regarding the specific teaching supplies that are eligible under the new tax credit, most are classified as consumable goods. These supplies include, but are not limited to:
- Construction paper
- Materials for science experiments
- Craft supplies – glue, paint, etc.
- Stationary – pens, pencils, etc.
- Posters and flash cards
Other items that qualify, but are not consumable goods, include: games, puzzles, books, storage containers and educational support software.
The last consideration in claiming the Teacher and Early Childhood Educator School Supply Tax Benefit is being able to prove the authentication of the expenses. Specifically, this means that teachers and educators should obtain a certification from their employer, or a delegated official of the employer, substantiating the expenses.
While teachers and educators are not required to produce this certification, unless the Canada Revenue Agency requests it, it should be obtained prior to making the claim. That way it can be stored with relevant receipts and produced in a timely manner, upon request.
The certification should be a signed statement that attests to the amounts paid for teaching supplies, which meet all of the eligibility criteria previously discussed.
For more information on the certification and the Teacher and Early Childhood Educator School Supply Tax Benefit, visit the CRA’s Website.
