Educators Should Save Receipts for Reinstated Deduction
the IRS Web Site IR-2004-124, Oct. 13, 2004
— The Internal Revenue Service today advised
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.
Working Families Tax Relief Act of 2004 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 October 4.
deduction is available to eligible educators in
public or private elementary or secondary schools.
To be eligible, a person must work at least 900
hours during a school year as a teacher, instructor,
counselor, principal or aide.
educator may subtract up to $250 of qualified out-of-pocket
expenses when figuring adjusted gross income (AGI).
This deduction is available whether or not the taxpayer
itemizes deductions on Schedule A.
IRS suggests that educators keep records of qualifying
expenses in a folder or envelope with a label such
as “Educator Expense Deduction,” noting
the date, amount and purpose of each purchase. This
will help prevent a missed deduction at tax time.