Tax Break Idea

Washington State teachers have had no COLA (cost of living adjustment) for at least 6 years.(1)

Average salary for a secondary teacher in Washington for 2013-2014 is $51,675.17. (2)

Teacher deductions (“unreimbursed work expenses”) on Form 1040 Schedule A are limited by the 2% AGI rule. (3)

In 1993 teacher out-of-pocket spending averaged $444 annually.  (4)

That means teachers can’t deduct any of that $444 unless it exceeds 2% of $51,675.17 (assuming AGI is Gross), or $1033.50. Worse than that, their deduction is only the amount that exceeds 2% of AGI.

My idea: start a 501c3 that would take teacher donations online and then return those funds to them as a “classroom grant” minus a 1% processing fee. That means teacher out-of-pocket expenses could be fully deductible via a charitable donation, and thus every penny. If you are interested in this idea, please contact me.





(3) Need reference, perhaps IRS Publication 509?


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