| From purchasing classroom supplies to paying for grad | | | | qualify for the Hope Credit, the Lifetime Learning Credit, |
| school tuition, a career in teaching can leave a person | | | | the student loan interest deduction, or the tuition and |
| feeling a bit light in the wallet. Fortunately, there are a | | | | fees deduction. |
| number of tax breaks available to educators. If | | | | Deducting the Cost of Supplies |
| you’re a teacher looking for income tax help, | | | | If you are a kindergarten through grade 12 teacher, |
| here’s what you need to know: | | | | instructor, counselor, principal, or aide in a school for at |
| Reporting Income from Tutoring | | | | least 900 hours during a school year, you are allowed |
| The educational institution employing you should | | | | an above-the-line deduction of up to $250 of qualified |
| provide you with a Form W-2, Wage and Tax | | | | expenses you paid during the tax year. This deduction |
| Statement, which reports your income from wages, | | | | directly reduces your income, and you do not need to |
| prizes or awards. Payments that you receive for | | | | itemize deductions to obtain this benefit. |
| providing services as a tutor, in addition to your regular | | | | While supplies used for home schooling or non-athletic |
| job, may be considered income from self-employment | | | | supplies used for courses in health or physical |
| and are reportable on Schedule C, Profit or Loss from | | | | education do not qualify, you may be able to deduct |
| Business. Examples include tutoring high school | | | | the out-of-pocket cost for supplies that exceed the |
| students and college students after school or providing | | | | $250 limit if you itemize your deductions. You should |
| music lessons to any individual (voice, piano, drums, | | | | keep receipts to substantiate all expenses. |
| guitar, etc) on the weekends. | | | | Other Itemized Deductions |
| If you are self-employed and your net earnings are | | | | Other expenses teachers may be able to include as |
| $400 or more, you must pay self-employment tax on | | | | itemized deductions are: |
| the income you report on Schedule C. In addition, you | | | | * Subscriptions to professional publications or |
| may need to make estimated payments to cover the | | | | magazines |
| amount of self-employment tax or income tax | | | | * Professional dues |
| associated with the income you report on Schedule C. | | | | * Union dues |
| Deducting Continuing Education Expenses | | | | * Fees paid to renew your teaching certificate |
| You may be able to reduce your taxes by deducting | | | | * Expenses incurred when lecturing, writing or publishing |
| expenses for tuition incurred in pursuing graduate | | | | for which you receive no additional compensation |
| school or other additional education. If the education is | | | | other than your regular salary. Note: These expenses |
| part of your state school board's certification renewal | | | | may be for research, incidental travel and publication |
| process, it may be deductible. However, if the | | | | costs. They must be ordinary and necessary |
| education is needed to meet the minimum educational | | | | expenses for activities related to, and expected for, |
| requirements to qualify you for a particular position, or | | | | your position. |
| if the education will qualify you for a new trade or | | | | * Clothing required for work that is not appropriate for |
| business, it is not deductible. Changing from an | | | | everyday wear, such as an art teacher's smock or a |
| elementary school teacher to a secondary school | | | | dance teacher's jazz shoes |
| teacher or changing the subject you teach, from | | | | * Allowable car expenses incurred when taking |
| biology to art, for example, is not a change to a new | | | | mentally handicapped students on an excursion |
| business. Classroom teachers that become guidance | | | | * Cost of materials used for a class play or a class |
| counselors or school administrators are also not | | | | party |
| considered to have changed their trade or business. | | | | For more tax tips and information on tax preparation, |
| Once you have met the minimum educational | | | | please visit the Tax Resource Center at |
| requirements for teachers for your state, you are | | | | About Jackson Hewitt |
| considered to have met the minimum educational | | | | This article was provided by Jackson Hewitt, the |
| requirements in all states. This is true even if you must | | | | nation’s second-largest tax preparation service. |
| get additional education to be certified in another state. | | | | Jackson Hewitt’s franchised and company-owned |
| Any additional education you need is qualifying | | | | locations offer full-service, individual federal and state |
| work-related education. You may still be able to obtain | | | | income tax preparation, free IRS e-filing with paid tax |
| a benefit from educational expenses that do not | | | | preparation, and facilitate related financial products. |
| qualify for a work-related education deduction if you | | | | |