Greenwood School District 50

 

Deduction for Educator Expenses

 

If you are an eligible educator, you can deduct as an adjustment to income up to $250 in qualified expenses. You can deduct these expenses even if you do not itemize deductions on Schedule A (Form 1040). This adjustment to income is for expenses paid or incurred in tax years beginning during 2002 or 2003. Previously, these expenses were deductible only as a miscellaneous itemized deduction subject to the 2% of adjusted gross income limit.

 

Eligible educator. You are an eligible educator if, for the If you have an NOL from a tax year ending during 2001 or tax year, you meet the following requirements.

Text Box: Internal Revenue Information
 


1)       You are a kindergarten through grade 12:

a)       Teacher,

b)       b) Instructor,

c)       Counselor, Principal, or

d)       e) Aide.

 

2)       You work at least 900 hours during a school year in a school that provides elementary or secondary education, as determined under state law.

 

Qualified expenses. These are unreimbursed expenses you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics.

 

To be deductible as an adjustment to income, the qualified expenses must be more than the following amounts for the tax year.

 

         The interest on qualified U.S. savings bonds that you excluded from income because you paid qualified higher education expenses,

         Any distribution from a qualified tuition program that you excluded from income, or

         Any tax-free withdrawals from your Coverdell education savings account.