Dec 05, 2017
Like the rest of America, educators are greatly affected by the changes to the tax code currently working their way through Congress. But what will this mean for tutors who work in and outside of the classroom?
In case you haven't heard, the tax code is going through a bit of a refresh. Like, the biggest change to tax law in decades. And something about scribbled notes that will affect every American. Chances are you've been following the process at least a little, but have you stopped to think how this will affect the educators in your life?
K-12 teachers benefit through a doubling of the allowable deduction for classroom supplies (up to $500 from $250), an "above the line" deduction that benefits them despite the sweeping changes to deductions included in the bill.
Beyond this, however, there don't seem to many upsides for educators inside or out the classroom: parents are gifted broader 529 savings plan options for use in K-12 private scools, a major victory for school choicers and a blow to the public system. Moreover, school districts will have to find other ways to raise money, as local and state taxes are no longer deductible (meaning they will be a harder sell to constituents) and certain types of debt are now off limits.
For tutors, expect a certain grey area: the de-funding of public schools will likely result in higher demand for tutoring, but the new deduction structure will make it harder for freelancers and parents alike to deduct tutoring-related expenses from their taxes, making it a harder sell for some.
Content and image credit: Chalkbeat - What does the federal tax bill mean for schools and families? These stories can help you understand https://www.chalkbeat.org/posts/us/2017/12/04/what-does-the-federal-tax-bill-mean-for-schools-and-families-these-stories-can-help-you-understand/
