As the costs of school supplies rise, and teachers and other educators consider how to keep students safe during the COVID-19 pandemic, the government is providing some relief.  Under the COVID-Related Tax Relief Act, passed as part of the Consolidated Appropriations Act, 2021 (“CAA”), teachers and other educators can now deduct out-of-pocket expenses for COVID-19 protective items on their individual tax returns.  On February 4, 2021, the IRS released Revenue Procedure 2021-15, which provides guidance on this new tax relief.

Revenue Procedure 2021-15 provides that deductible “COVID-19 protective items” include, but are not limited to, the following:

• Face masks;
• Disinfectant for use against COVID-19;
• Hand soap;
• Hand sanitizer;
• Disposable gloves;
• Tape, paint, or chalk used to guide social distancing;
• Physical barriers;
• Air purifiers; and
• Other items recommended by the Centers for Disease Control and Prevention to be used for the prevention of the spread of COVID-19.

“Eligible educators” can deduct unreimbursed expenses for COVID-19 protective items paid or incurred after March 12, 2020.  Eligible educators include any individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.  The educator expense deduction rules permit these teachers and educators to deduct up to $250 of qualifying expenses per year ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each).

While this is welcome news for many teachers and educators, other expenses that were already deductible, such as expenses for pens, pencils, and books count toward the same $250 (or $500) limit.  Unfortunately, since many teachers and educators already reach the $250 (or $500) limit, we expect that the new tax relief will be of little benefit.  Nonetheless, the tax relief may help offset COVID-19 protective item expenses for some teachers and educators.