How to file taxes as a substitute teacher.

Now is the time of year when we’re all collecting paperwork to pay Uncle Sam. Here’s a little guidance about how to file taxes as a substitute teacher, and what you might claim as a tax deduction for substitute teachers.  

When you start a new role in a W-2 capacity, you’ll usually have an opportunity to set up federal and state withholding with your employer. This form is called a “W-4” tax withholding document. You’ll also likely complete an I-9, which indicates your legal right to work in the United States. 

But there might be some complexity, depending on your unique financial circumstances. This guide will help you better understand your responsibilities when filing taxes as a substitute teacher, including how to accurately file your return with the IRS. 

How to review your pay stub for accuracy.

Your pay stub is the foundation for an accurate W-2. A W-2 is the form your employer provides to summarize your annual earnings and withholding. 

For example, substitute teachers employed through Kelly Education are W-2 employees — not contractors. The distinction here is important, because as a W-2 employee, withholding occurs automatically. 

This means taxes such as Social Security, Medicare, and federal income taxes are already “taken out” of your paycheck. If you were an independent contractor (1099), you would need to do your own withholding. 

Now, to ensure your W-2 is correct, you should check your pay stub for any discrepancies, like missing hours or incorrect deductions. If you spot an error, make sure to report it as soon as possible to your employer to avoid filing incorrect information with the IRS. 

This also matters because being underpaid or overpaid can also create issues, such as needing a catch-up payment or even owing your employer overpaid wages. 

Understanding W-2 vs. 1099: what’s the difference?

A W-2 employee is classified as a traditional employee. Taxes are withheld from your paycheck, and your employer contributes to Social Security and Medicare on your behalf. 

On the other hand, a 1099 employee (also known as an “independent contractor”) handles their own tax withholding for federal and state taxes (where applicable) and is responsible for paying the self-employment tax. 

Fortunately, being a W-2 employee means less administrative burden for you personally. Your employer reports your income and withholding to the IRS, and you typically won’t owe self-employment taxes unless you have other self-employed work on the side. 

However, you still need to file a return if your income exceeds the IRS filing thresholds. In 2024, that threshold is $14,600 of gross income as a single filer under the age of 65. 

Note that it is possible to have income from both W-2 and 1099 sources. You should report all your income from all sources to the IRS if you exceed the filing threshold for the year. 

Tax deductions for substitute teachers: maximizing your savings.

Substitute teachers who itemize deductions may be eligible to deduct certain job-related expenses. A deduction, according to the IRS, is a way to reduce the amount of your income that is subject to taxation. 

The most common of these deductions is the standard deduction, but some taxpayers may also decide to itemize deductions if the total of the itemizations exceeds the standard deduction. This is especially true, as there are specific tax deductions for substitute teachers and other educational professionals. 

The IRS allows educators, including substitute teachers, to deduct up to $300 (or $600 total if filing jointly with your spouse) for out-of-pocket classroom supplies, even if they don’t itemize. This might include: 

• Paper, pens, and notebooks for students 

• Art supplies for class projects 

• Cleaning supplies to maintain a safe classroom environment 

To take advantage of these deductions, however, you need to be what’s known as an “eligible educator.” Here’s how the IRS defines that term: You’re an eligible educator if, for the tax year, you’re a kindergarten through grade 12 teacher, instructor, counselor, principal or aide for at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. 

You can learn more about other educator expense deductions on the IRS Topic No. 458 page. But it’s important to note that the standard deduction may make the most sense for you, given that it’s reasonably high. Check with your tax accountant or tax filing software to see if it makes sense to itemize your deductions or simply take the standard deduction. 

Managing withholding as a part-time or temporary worker. 

Not all substitute teachers have the benefit of working as a full-time employee. If you’re working as a part-time or temporary worker, you should consider your withholding situation when it comes to substitute teacher taxes. 

The IRS recommends filling out a W-4 form to match your withholding to your tax situation. 

If you only work a few times a year or in multiple districts, you should consider using the IRS Tax Withholding Estimator. You can estimate your federal income tax withholding by supplying your pay stubs from all jobs (and from your spouse if filing jointly), any other side income and investment income, and your most recent tax return. 

You should consider using this tool if you’ve recently started a new job, got married, had a child, or purchased a new home. The goal here is to avoid having not enough tax withheld and owing a hefty bill at the end of the year. Substitute teacher tax withholding doesn’t have to be difficult if you use the estimator tool. 

Threshold for reporting to the IRS as a substitute teacher.

Even if you only worked a few days during the year, any earnings reported on your W-2 must be included on your tax return. The IRS filing thresholds for 2024 for teachers under age 65 are: 

• $14,600 for single filers 

• $21,900 for head of household filers 

• $29,200 for married couples filing jointly or for a qualifying surviving spouse 

If your income is below these amounts, you may not owe taxes but still need to file a return to receive a refund for any overpaid taxes. 

Note that these rates specifically apply to the 2024 tax year, so they are likely to be updated each year. 

Grow your educator skills.

At Kelly Education, we understand the challenges that professional educators face, and that’s why we’ve assembled a library of helpful materials for substitute teachers. If you found this guide helpful, you might also like: 

• Classroom management for substitute teachers 

• What not to do as a substitute teacher 

• How to become a substitute teacher in your state 

If you or someone you know is interested in substitute teaching jobs, fill out our brief interest form, and one of our recruiters will contact you to answer your questions. 

* This article is not intended as professional tax advice. Always consult your personal tax advisor for individual needs. 

I’m interested