Principal Issues: Whether a teacher can claim the eligible educator school supply tax credit for teaching supplies purchased and used during a period when their classroom was required to temporarily move to an online platform as a result of the COVID-19 pandemic
Position: Likely yes, assuming the remaining requirements for the credit are met.
Reasons: Where a classroom or a school is required to move to a temporary online learning platform as a result of the COVID-19 pandemic, it is our opinion that where all the requirements of section 122.9 have been met, an eligible educator would not be prevented from claiming amounts for the school supply tax credit, even though the classroom is not within the physical structure of an elementary or secondary school or a regulated child care facility. We view the online classroom in this situation as an extension of the physical classroom that is required due to the current pandemic situation.
October 19, 2021
Janet Schermann HEADQUARTERS Manager, Individual Income Tax Legislative Income Tax Rulings Amendments Section Directorate Legislative Policy Directorate Eric Wirag, CPA, CMA Legislative Policy and Regulatory Affairs Branch
2021-091375
Eligible educator school supply tax credit
We are replying to your question of whether a teacher can claim the eligible educator school supply tax credit for teaching supplies purchased and used during a period when their classroom was required to temporarily move to an online platform as a result of the COVID-19 pandemic.
More specifically you ask whether those supplies would be considered to be consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the eligible educators employment as required by the definition of “eligible supplies expense” in subsection 122.9(1) of the Income Tax Act (the Act).
You have provided as an example a teacher whose classroom has moved from in-person to virtual learning due to COVID-19 and:
- buys art supplies that they use to demonstrate virtually to students how to do an art project for art class;
- buys educational support software that they use to demonstrate a lesson or create an activity for the students to complete.
Our comments:
Subsection 122.9(2) of the Act allows an eligible educator to claim a 15% refundable tax credit which is based on an amount, up to $1,000, for eligible supplies expense incurred in the year.
An eligible educator, as defined under subsection 122.9(1), includes an individual who is employed at any time in the year in Canada as a teacher at an elementary or secondary school, or as an early childhood educator at a regulated child care facility and held a teaching certificate, licence, permit or diploma, or a certificate or diploma in early childhood education, which was valid and recognized in the province or territory in which they were employed.
An eligible supplies expense, which is also defined under subsection 122.9(1), is an amount paid in the year for teaching supplies that meet all of the following conditions:
- the eligible educator purchased the teaching supplies for teaching or facilitating students’ learning
- the teaching supplies were directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the eligible educators employment
- the eligible educator was not entitled to a reimbursement, allowance, or any other form of assistance for the expense (unless the amount is included in the calculation of their income for any tax year and is not deductible in the calculation of their taxable income)
- the eligible supplies expense was not deducted from any person’s income for any year or included in calculating a deduction from any person’s tax payable for any year
Teaching supplies, as defined in subsection 122.9(1), are either consumable supplies, or prescribed durable goods. Regulation 9600 identifies the prescribed durable goods as books, games and puzzles, containers (such as plastic boxes or banker boxes), and educational support software.
Where a classroom or a school is required to move to a temporary online learning platform as a result of the COVID-19 pandemic, it is our opinion that where all the requirements of section 122.9 have been met, an eligible educator would not be prevented from claiming amounts for the school supply tax credit, even though the classroom is not within the physical structure of an elementary or secondary school or a regulated child care facility. We view the online classroom in this situation as an extension of the physical classroom that is required due to the current pandemic situation.
Yours truly,
Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislation Policy and Regulatory Affairs Branch