New Tax Credit for Teachers and Early Childhood Educators – Prime Minister Justin Trudeau

Prime Minister Justin Trudeau introduces the Teacher and Early Childhood Educator School Supply Tax Benefit. Liberals understand that there are many teachers in the country who use their own money for their classroom supplies. That is why they propose this new tax credit. This will be based on the 2016 budget, so keep in mind to save all your receipts now.

The following are some details about the new tax credit:

1. What are the proposed new Teacher and early childhood educator school supply tax credit?

This benefit will apply to the purchase of up to $1,000 worth of school supplies per year, providing cash benefit of up to $150 annually, and will be available to all educators, regardless of income.

2. What is an eligible teacher or early childhood educator?

An eligible teacher holds a teacher’s certificate that is valid in the province or territory in which they are employed.

An eligible early childhood educator holds a certificate or diploma in early childhood education that is recognized in the province or territory in which the individual is employed.

3. What is an eligible supplies expense?

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 forms 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.

4. What kinds of eligible supplies expense?

Teaching supplies include consumable goods. Some examples are:

• Construction paper for activities, flashcards for activity centers;
• 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.

5. Is a computer, a tablet or rug (for kids to sit on) an eligible expense?

No. Computers, tablets, and rugs are not eligible expenses because they are durable goods.

 

Please note that 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. The Liberal government will build a stronger Canada by investing in children and educators.

To get more information on these new tax credit visit http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa03-eng.html.

 

Sources:

Liberal.ca

CRA Website

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