Part 1: Personal Federal Taxes Changes

4.  Eligible Educator School Supply Credit

For 2016 and subsequent tax years, there is a new refundable tax credit specifically for eligible educators – Eligible Educator School Supply Tax Credit.  This refundable tax credit allows an eligible educator to claim 15% of an amount of up to $1,000 per year for the eligible teaching supplies expenses.  The maximum refundable tax credit is $150 per year. 

To be eligible for this credit, the educator must be employed at an elementary or secondary school or at a regulated child care facility and, in the province or territory where the educator employed, one must hold either a valid teacher’s certificate or a valid certificate/diploma in early childhood education. 

There are certain conditions for the teaching supplies to be eligible.  Generally, the supplies must be purchased by the eligible teacher, the costs are not subject to any form of assistance, such as reimbursement or allowance (unless the reimbursement or allowance is reported on the eligible teacher’s income), and no person has deducted the costs before.

The eligible supplies can be construction papers, flashcards, art supplies, books for the classroom etc., but they don’t include computers, tablets, rugs, and some other durable goods that are not listed under eligible supplies.

Employer’s certification is required to claim this credit.

In Summary:

Eligible Educator School Supply Credit

1. New refundable tax credit for 2016 and beyond
2. 15% credit on up to $1,000 of supply purchases per year
3. The eligible taxpayer must be employed by either elementary school, secondary school or a regulated child care facility and must hold either a teacher’s certificate or a certificate/diploma in early childhood education that is valid in the province or territory where the educator is employed
4. Certain conditions must be met for the supplies to be eligible.
5. Employer’s certification is required.

For more information, please contact us @ 778-374-1865 or info@theresalocpa.ca

Note:  All information relating to the tax credits above is available from CRA website.

By Theresa Lo, CPA, CGA

January 4, 2017