How to Claim the Educator Expense Deduction
The educator expense deduction allows qualifying teachers and educators to deduct up to $250 in teaching expenses for which they have not been reimbursed.
To qualify, you must have worked 900 hours in a school that teaches kindergarten through twelfth grade education as a teacher, counselor, aide, principal, etc.
If you and your spouse both work in education meeting the above qualifications, you can claim a combined total of $500 in deductions.
Just remember that the deductions are per individual.
In other words, if your spouse spent $400 on qualified expenses and you spent $50, your combined maximum total deduction would be for $300, not $500.
In addition to classroom supplies, you can also deduct for other education related expenses, such as subscriptions to academic journals, union dues, and gas expenditures for field trips.
These are above-the-line deductions.
It means that you can claim these deductions even if you do not itemize deductions on your income tax return.
As well, above-the-line deductions are not subject to phase outs based on income levels and are deductions from your gross income rather than your Adjusted Gross Income.
Like all IRS deductions, it is important that you retain all your receipts associated with the Educator Expense Deduction.
In the event that you are asked to prove your expenditures, these records should be kept easily at hand.
You might also want to keep a running tab as to how much you have spent on items for which you will not be reimbursed, so you know exactly where your deduction stands at various times throughout the year.
This should help you not to spend too much.
It is easy to get excited about a $250 deduction that may benefit both you and your students.
It is equally as easy to spend $250 quickly and not be able to deduct any more expenses for the rest of the year.
Although the federal government limits your deduction to $250, there are many states and municipalities with similar incentives for educators, be sure to talk with your tax expert or State Department of Revenue to find out if there are additional incentives available in your jurisdiction.
As a friendly reminder to teachers and educators, any part time work in which you engage outside of the school year represents taxable income.
So, if you pick up extra money tutoring, working at a learning center, or painting houses in the summer, you need to report the earnings to the IRS.
To qualify, you must have worked 900 hours in a school that teaches kindergarten through twelfth grade education as a teacher, counselor, aide, principal, etc.
If you and your spouse both work in education meeting the above qualifications, you can claim a combined total of $500 in deductions.
Just remember that the deductions are per individual.
In other words, if your spouse spent $400 on qualified expenses and you spent $50, your combined maximum total deduction would be for $300, not $500.
In addition to classroom supplies, you can also deduct for other education related expenses, such as subscriptions to academic journals, union dues, and gas expenditures for field trips.
These are above-the-line deductions.
It means that you can claim these deductions even if you do not itemize deductions on your income tax return.
As well, above-the-line deductions are not subject to phase outs based on income levels and are deductions from your gross income rather than your Adjusted Gross Income.
Like all IRS deductions, it is important that you retain all your receipts associated with the Educator Expense Deduction.
In the event that you are asked to prove your expenditures, these records should be kept easily at hand.
You might also want to keep a running tab as to how much you have spent on items for which you will not be reimbursed, so you know exactly where your deduction stands at various times throughout the year.
This should help you not to spend too much.
It is easy to get excited about a $250 deduction that may benefit both you and your students.
It is equally as easy to spend $250 quickly and not be able to deduct any more expenses for the rest of the year.
Although the federal government limits your deduction to $250, there are many states and municipalities with similar incentives for educators, be sure to talk with your tax expert or State Department of Revenue to find out if there are additional incentives available in your jurisdiction.
As a friendly reminder to teachers and educators, any part time work in which you engage outside of the school year represents taxable income.
So, if you pick up extra money tutoring, working at a learning center, or painting houses in the summer, you need to report the earnings to the IRS.
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