Winter break is over and since most students are back in school we decided to cover the Educator Expense as our newest deduction of the week.
Details on the Deduction
The IRS allows qualifying teachers and educators to deduct up to $250 worth of un-reimbursed expenses related to teaching. Common examples include books, paper, crayons, binders, software, etc.
Who Qualifies?
In order to qualify for the deduction a taxpayer must be an individual who worked 900 hours or more teaching kindergarten through 12th grade in a school that provides elementary or secondary education. The deduction is also available to other taxpayers working in the education field such counselors, principals, or aides.
Outside the Classroom Expenses
In addition to supplies for inside the classroom you can also deduct a handful of other related expenses including gas spent on field trips, subscriptions to academic journals, and even fees paid in union dues.
Above-the-Line
The educator expense deduction is an above-the-line deduction, meaning that you can claim it even if you do not itemize your return. These above-the-line deductions are generally more advantageous since they are subtracted from a taxpayer's gross income, rather than their adjusted gross income. Additionally, above-the-line deductions are not subject to income-sensitive phase outs or limitations.