The Internal Revenue Service advises teachers and other
educators to save their receipts for books and other classroom
supplies.
The Internal Revenue Service advises teachers and other educators to save their receipts for books and other classroom supplies. They will be able to deduct up to $250 of such expenses again this year, following recently enacted legislation.
The Working Families Tax Relief Act reinstated the educator expense deduction, which had expired at the end of last year, for both 2004 and 2005. Expenses incurred any time this year may qualify for the deduction, not just those since the Act was signed on Oct. 4.
“We want the word to get out about this restored benefit,” said Jesse Weller, IRS spokesman. “The deduction for teacher-paid classroom supplies should lower the taxes of over 300,000 California teachers, even if they claim a standard deduction.”
The deduction is available to eligible kindergarten through grade 12 educators. To be eligible, a person must work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide. An educator may generally subtract up to $250 of qualified out-of-pocket expenses when figuring adjusted gross income. This deduction is available whether or not the taxpayer itemizes deductions on Schedule A.
Qualified expenses for classroom materials include books, supplies (other than nonathletic supplies for health and physical education classes), computer equipment and related software and services, other equipment, and supplementary materials used in the classroom.
Weller added, “Although this good news comes late in the year, I would tell educators what my fifth-grade teacher told me: ‘It’s better than a poke in the eye with a sharp stick.”
For more information, visit the IRS Web site at www.irs.gov or call the IRS Tele-Tax system toll-free at 1-800-829-4477 and select Topic 458.
