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Teachers Don’t Forget Your Tax Benefits

Teachers Don’t Forget Your Tax Benefits

Tax Benefits for Teachers

There are special tax benefits for teachers.  Teachers, administrators, and aides should know what to keep track of to decrease your tax burden at tax time. There are three key work-related tax benefits.   These benefits will help reduce what you pay in taxes.  The IRS defines a teacher as anyone teaching grades K-12, an instructor, counselor, principal or aide.  Either you must have worked in a public or private school.  Most noteworthy, you must have worked at least 900 hours during the school year.

Tax Deductions for Out of Pocket Expenses

Take advantage of tax deductions for qualified expenses related to your profession. The cost many educators incur out-of-pocket include items such as supplies, training, and travel.

So there are two methods educators can choose for deducting qualified expenses:

  1. 1. the Educator Expense Deduction (up to $250)
  2. 2. for those who itemize their deductions claiming eligible work-related expenses as a miscellaneous deduction on Schedule A

Therefore if you are planning to itemize, you should save your receipts.  It does matter whether your school has reimbursed you for the expense. It does matter whether or not you have tried to get reimbursed if the school does reimburse expenses.  Therefore, if the school has reimbursed you and listed the reimbursement amount in box 1 of your W-2, you can still claim the deduction. Since you are being taxed on the reimbursement.  Because you were reimbursed and the amount is not listed in box 1 you can not claim it.  Always remember that if the receipt isn’t obvious that you should write a note on it.  This will explain what the purchase was for.  For more information about the tax credit the IRS website.

Additional Tax Benefits for Teachers

Finally, the third key benefit enables many teachers and other educators to take advantage of either the Lifetime Learning Credit or the American Opportunity Tax Credit.  A tax credit does not work like a tax deduction.  The full amount decreases your taxable income.

Help Is Just A Phone Call or Click Away

For questions about this blog email  If you need help amending a previous return to claim expense deductions you have a limited amount of time.  Call us at 561-293-3135 or contact us.

In conclusion, we would also like to recommend to anyone reading our blog teacher or not that they support or join Begging for Education.  Let’s all remember that our teachers hold our future in their hands.  They are helping to form our future doctors, lawyers, lawmakers, nurses and our very own children.  They deserve all of the support that we can give them.