Teachers Should Save Receipts For Tax Deduction
In IRS News Release IR-2002-65 the IRS advised teachers to save their receipts for purchases of books and classroom supplies since the expenses may be deductible. The new deduction is available to eligible educators in both public and private elementary and secondary schools. They must work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide. Taxpayers may subtract up to $250 of qualified expenses when figuring their adjusted gross income (AGI). They will not need to itemize deductions to get this benefit. Prior to the change in the law, educators could take such expenses only as miscellaneous itemized deductions, which must be reduced by two percent of AGI.