The Eligible Educator School Supply Tax Credit, worth 15% of up to $1,000 of eligible supply expenses, has now received Royal Assent. CRA has also published a Question and Answer providing commentary on this new refundable tax credit available in 2016 and subsequent years.
Who Qualifies?
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.
What Expenditures Qualify?
An eligible supply expense is an amount paid in the year for supplies used or consumed in the school or regulated child care facility in the performance of the taxpayer’s employment. Supplies include:
- construction paper, flashcards, items for science experiments, art supplies, and stationary items; and
- durable goods limited to games, puzzles, books, containers and educational support software. Computers, tablets and rugs (for kids to sit on) are provided as examples of expenses which are not eligible.
The expense must not be reimbursable, nor subject to an allowance or other form of assistance. As well, the credit cannot be claimed for an expense which is deducted by any person for the year. The credit is available for the year in which it was purchased rather than when it was used.
Documentation Requirements
CRA may ask taxpayers to provide certification from their employer attesting to the eligible supplies expense. Employers providing this certification should not also provide a T2200, Declaration of Conditions of Employment, which relate to the supplies.
For further information see VTN Monthly Tax Update Seminar, Issue No. 422