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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.
About the author:
Richard Chapo is CEO of BusinessTaxReco
very.com - We recover overpaid business taxes for
small businesses. 80% are due refunds of $5,000 to $10,000 on
past tax filings. How much you are owed?
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