Back To School ? Educators Deduct School Expenses > NetSparsh

Home
>
Tax
>
Back To School ? Educators Deduct School Expenses

Back To School ? Educators Deduct School Expenses

As teachers and students head back to school following a glorious summer, it's time to remind teachers to organize 2004 school expenses. Under a temporary tax code change, teachers can deduct certain school-related expenses from adjusted gross income.

Educator Expense Deduction

If you work in the education field, you may be able to deduct up to $250 from your adjusted gross income for 2004 taxes. Unfortunately, the deduction is only applicable to 2004, but there is a reasonable possibility it will be extended to the 2005 tax year and beyond. As a result, you should continue to keep records so you can claim the deduction if it is extended. So, who can claim it and what can be claimed?

"Educators"

Under the tax code provision, "educators" are defined as a fairly broad group of professionals. You are an education if you comply with the following guidelines:

1. You teach kids in kindergarten or through grade 12;

2. You are a teacher

3. You are an instructor

4. You are a counselor

5. You are an aide, or

6. You are a principal

If you fit within one of the above positions, there is an additional time requirement that must be met. You must work at least 900 hours in an elementary or high school during the year in question. This equates to roughly half a year.

Expenses

As an educator, you are allowed to deduct unreimbursed expenses you paid for school room items. Examples include books, computer programs, writing supplies and those little stars I used to love getting on my book reports. Just make sure the school is not covering the costs.

The educator expense deduction is a rather disappointing $250, but every deduction counts when it comes to taxes. Make sure you claim the deduction and keep your receipts for the write off.

Richard Chapo is with http://www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - http://www.businesstaxrecovery.com/articles - to read more tax articles.

In The News:

Yellen removes obstacle to global corporate-tax deal LivemintU.S. drops key obstacle to global digital tax: Treasury The HinduBiden admin removes stumbling block to global deal on digital tax Business StandardU.S. Drops Digital Tax Demand, Opening Door to Global Deal BloombergView Full coverage on Google News

When It Comes to U.K. Taxes, Sweat the Small Stuff BloombergQuint

Congress demands roll back of ‘Modi tax’ on fuel The Hindu

Biden’s stimulus and the ‘financialization’ of taxes Livemint

Remote Work and Taxes: Start Preparing for Next Year Now BloombergQuint

RBI governor urges Centre, states to cut fuel taxes Times of India

Sunak Plots Tax Raid to Plug U.K. Deficit, Risking Tory Rage Bloomberg

Former Spain king pays 4 million euros in back taxes amid scandals WION

Will home purchase by mother using NRI son's money face tax? BusinessLine

Explained: Why India needs to lower taxes on petrol, diesel India Today

The PF will be taxable at your marginal rate of tax Mint