Plus NEW mileage rates!

Summer is coming to a close next month and the back-to-school advertising blitz is underway. Hidden in some of those school expenses are tax deductions you can take advantage of. Here are some ways you can save:

1. Watch for tax deductions on the supply list. Schools often send a list of requested supplies for the school year. Some of the items on the list are clearly for personal use (such as an eraser or a ruler) while other items on the list are often for school use and classroom use (such as 24 pencils or paper towels). Keep track of these non-cash classroom/school donations for possible charitable deductions. Or even better, donate cash.
2. Donate funds versus taking the raffle ticket. Raffles, subscription drives and silent auctions are fun ways schools raise money. To maximize your ability to deduct your donations, forgo the possible prize. Then the entire donation is clearly deductible. Remember to ask for a receipt when making the donation.
3. Don’t forget your out-of-pocket expenses for your volunteer activities. Perhaps you donate your time at school functions, donate books to the school library, or help assist the teaching staff. Your out-of-pocket expenses and mileage should be tracked for charitable deduction purposes.
4. Teachers, save your out-of-pocket expenses. A recent survey found that 94 percent of teachers spend their own money on classroom supplies — some as much as $1,000 per school year. On your 2026 tax return, teachers are allowed to deduct $350 on their tax return even if they claim the standard deduction. If you’re married, you can deduct up to $700 of classroom supplies. Plus any excess can be taken as an itemized deduction which makes sense if you hit the itemized deduction threshold.
5. Use checks, not cash. If you usually provide donations to the school in the form of cash (like providing additional money to help other kids go on field trips) make those donations in the form of a check. The check will serve to help prove your donation.

New in 2026: There is a new $1,000 above-the-line deduction ($2,000 if married filing joint) of cash donations to qualified charities that can be taken even if you do not itemize. So consider this as you are asked to donate to your school this upcoming year.

Finally, don’t forget to review state rules for educational expenses. There are often credits available for out-of-pocket school and other educational expenses.

_________________________ ANNOUNCEMENT _________________________

Effective July 1, 2026, the mileage rates used to reimburse business expenses is increased by 3.5 cents to 76 cents per mile. This is an increase from 72.5 cents per mile. Medical/moving mileage rates are now 23.5 cents up from 20 cents. Charitable mileage remains unchanged at 14 cents per mile.

These mileage reimbursement changes are made as a reflection of the increase in gas prices.

Category: Deductions	Published: 07/31/2026