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.
Richard Chapo is with http://www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - http://www.businesstaxrecovery.com/articles - to read more tax articles.
While accountants are reaching for aspirin, millions of Americans are... Read More
If you are environmentally conscious and purchase a 2005 Ford... Read More
Emerging Legal issues of Tax compliance of e-business Self-assessment system... Read More
One way to maximize your business profits is by reducing... Read More
Small Businesses Filing Amended Federal Tax Returns to... Read More
Six Urban Myths ? Taxation"I am proud to be paying... Read More
As an employer, you must pay employment taxes if you... Read More
As we enter mid-March, taxpayers begin to become very interested... Read More
As your business grows, you are going to need help.... Read More
Hit a big one? With more and more gambling establishments,... Read More
If you have employees, you are responsible for paying a... Read More
Millions of people file tax return extensions every year. The... Read More
As a gentleman was leaving my class recently, he wanted... Read More
It may not be high on the list of wedding... Read More
Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
As a sole proprietor, it's wise to familiarize yourself with... Read More
Background issues of access to recordsTo assess the records at... Read More
If you have recently started an Internet or home business,... Read More
Many small businesses complain when confronted with the expense of... Read More
Beware of advertisements that claim to settle tax debts for... Read More
Media reporting of a new EU savings tax directive has... Read More
Most people trying to make a crust online (or offline... Read More
Recently, I stumbled across a concept that could change your... Read More
If your like many, you don't always understand what people... Read More
April 15th looms in front of most people every year... Read More
For many business owners the answer to this quandary is... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Excerpted from the new book, "How to Do Space Age... Read More
With gas prices at an all time high before Hurricane... Read More
Ever wish that, as a business owner, you knew exactly... Read More
We need real tax reform and we need it now.... Read More
Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More
Estate taxes. It's not enough to simply know they exist,... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
NOTE: This is the first in a series of 5... Read More
Donating your used car to charity is a win-win situation;... Read More
If your business has employees, you must pay employment taxes.... Read More
As a small business owner, it's wise to familiarize yourself... Read More
Millions of people file tax return extensions every year. The... Read More
Most people look forward to getting their tax return, but... Read More
Over 50% of marriages end in divorce in the United... Read More
April 15 - The most dreaded day of the year... Read More
Yes, the tax season is upon with the first filing... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
As we enter mid-March, taxpayers begin to become very interested... Read More
In the largest criminal tax case ever filed, KMPG has... Read More
Someone once said, 'the best way to calculate your taxes... Read More
You're at your office, or home, and the doorbell rings... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
In elementary school, kids come up with creative excuses why... Read More
One of the most important, but least understood or appreciated... Read More
If your like many, you don't always understand what people... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Recently, I stumbled across a concept that could change your... Read More
As everyone in the U.S. knows, we have just passed... Read More
We need real tax reform and we need it now.... Read More
Choosing the right tax preparer for your business is a... Read More
In the rush to get tax returns prepared and filed... Read More
Newlyweds and the recently divorced should make sure that names... Read More
Many Americans believe that an IRS debt is a debt... Read More
As teachers and students head back to school following a... Read More
"What we've got here is a failure to communicate." ... Read More
Anyone who is closely related to an accountant knows that... Read More
It's a moment every person dreads. You pick up the... Read More
While there are many equally valid reasons to incorporate, saving... Read More
Tax |