Teachers Tax Deduction

If you are a teacher you may have thought that you no longer are eligble for the educators' deduction because it expired at the end of 2003. It was restored through The Working Families Tax Relief Act for 2004 and 2005.

The educators' deduction allows teachers to claim a $250 tax deduction for school supplies they bought with their own money. This is an especially valuable tax deduction since there is no need to itemize your tax return to claim it. Some of the expenses that qualify include books, computer equipment, supplies, and supplementary materials used in the classroom.
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New Tax Deductions (http://www.newtaxdeductions.com)

Does anyone know if this will be renewed this year? Also if it is not renewed are teachers still allowed to itemize their deductions? Thanks.

We at Kiplinger are confident that Congress will restore the $250 above-the-line deduction for teachers for 2006 before adjouring for the year, perhaps within the next few weeks. This break may be blended in with the pension reform bill the lawmakers will debate after returning from their Memorial Day recess.

This deduction is available whether or not you itemize other deductions and has no impact on your right to itemize deductions.

--Kevin McCormally
Kiplinger's

Ok.....I'm still a newb at all this. So ANY expenses I spend on my classroom or education related can be deducted regardless of the passing of this law?

Shoewee,

The deduction for Educators allowed an adjustment to income of up to $250 for unreimbursed expenses for classroom materials. At present this deduction ended on December 31, 2005. This is the deduction to which McCormally was referring.

If you have expenses above that you may be able to claim an itemized deduction on Schedule A in the Miscellaneous section subject to 2% of your AGI.