Washington-- Indiana teachers who purchase school supplies for their students out of their own pockets would receive nearly $10 million in new tax relief under legislation co-sponsored by Senator Evan Bayh.

“The quality and character of Indiana’s teachers is reflected in the fact that so many dip into their own pockets, despite their modest salaries, to ensure their students have what they need to succeed in the classroom,” Bayh said. “When teachers stretch their own financial resources to provide a better education for our children, the IRS should give them a break. Our government must be a partner in creating the best learning environment for our kids. Raising this deduction is the least we can do.”

According to the National Education Association, teachers spend an average of $450 out of their own pocket annually on classroom expenses, such as school supplies, for their students. Currently, teachers can deduct up to $250 of those expenses on their federal income taxes. Under the Teachers Tax Relief Act of 2007 co-sponsored by Senators Bayh and Susan Collins (R-ME), the allowable deduction would increase to $400.

In 2005, more than 63,000 Indiana teachers claimed the deduction for a total of $15.5 million in tax relief. By raising the allowable deduction to $400, the Bayh legislation would provide nearly $10 million more in tax relief for Hoosier teachers.

Additionally, the legislation would make permanent the tax deduction, which is set to expire at the end of this year. Teachers could also include personal expenses for continuing education and training in the allowable deduction amount.

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