Teacher and Early Childhood Educator School Supply Tax Credit
Posted by Palmer Leslie on
The Canadian government has approved a teacher and early childhood educator school supply tax credit. This measure will allow an employee who is an eligible educator to claim a 15% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year.
The new tax credit can only be claimed by an eligible teacher or early childhood educator employed at an elementary or secondary school or a regulated child care facility.
An eligible supplies expense is an amount paid in the year by an eligible teacher or early childhood educator for teaching supplies that are:
- purchased by the teacher or educator for teaching or facilitating learning, and directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the teacher or educator’s duties of employment;
- not reimbursable and not subject to an allowance or other form of assistance (unless the reimbursement, allowance or assistance is included in the income of the teacher or educator and not deductible); and
- not deducted or used in calculating a deduction from any person’s income for any taxation year.
To be an eligible supplies expense, the teaching supplies must be purchased in the taxation year, by an eligible teacher or early childhood educator to use in a school or in a regulated child care facility for the purpose of teaching or helping students learn.
Teaching supplies include consumable goods. Some examples are:
- Construction paper for activities, flashcards for activity centres;
- Items for science experiments, such as seeds, potting soil, vinegar, baking soda and stir sticks;
- Art supplies such as paper, glue and paint; and
- Various stationary items, such as pens, pencils, posters and charts.
The only durable goods that qualify as teaching supplies are listed below:
- games and puzzles;
- books for the classroom;
- containers such as plastic boxes or banker boxes; and
- educational support software.
Computers, tablets and rugs are not eligible expenses because they are durable goods (which can be used repeatedly or continuously for a relatively long time) that are not included in the above list of durable goods that qualify as teaching supplies.
Please consult the Department of Finance Canada's Budget 2016 documents for details