Teachers Educator Expense

[Jesse]

Correct me if I'm wrong, teachers are allowed up to $250 expense for supplies as an adjustment to income, but they must have receipts for these expenses.

I have had several teachers tell me this is suppose to be an automatic deduction and they do not need to keep receipts and I'm beginning to doubt myself.

[Beth]

Educator Expense

If they tell you they have SPENT the money, then you can take the deduction. They should be aware however that if they are audited, it is up to them to prove the expense. It is not an automatic deduction.

[Luis Mopeo]

I could be looked upon as a purveyor of misinformation on this issue. I know a lot of teachers personally, and every one of them spends hundreds of dollars and sometimes thousands of dollars every year on supplies for their classrooms. When I do a teacher's return, I don't waste time verifying that they spent the money. I just tell them I report the maximum because everyone I know spends much more than $250.

I wouldn't be surprised if the "automatic" nature of the deduction is the result of other preparers doing the same thing. It just doesn't seem to be worth wasting any more time than it takes to enter the amount. Especially considering that it's less than the wiggle room we all give our clients when grabbing a number for noncash charitable contributions out of thin air.

[BP.]

Agree w/Beth, not an automatic deduction; also agree w/Luis that most teachers spend more than the $250, which is why it is necessary to find out what was spent, as the excess over $250 may qualify on the Schedule A.

[OldJack]

I agree with Beth and strongly disagree with Luis. A tax preparer must never make up fictitious numbers for taxpayers.

[oceanlovin'ea]

Verify they have receipts

I don't ask to see the receipts but I ask them if they spent at least $250 on supplies for their classroom during the year. I have never had one that hadn't spent more than that during the year.

Usually they tell me they have the receipts or they tell me that they spent $279.85 or 444.98. So they have added their receipts and brought me a total.

I haven't had anyone say it is an automatic adjustment. If they wanted to take the deduction but didn't have receipts, I would advise them that if audited the deduction would most likely be disallowed.

Linda F

[Chief]

Teachers Expenses

BUT if they have additional expenses and receipts I would use 2106 and deduct on Sch A.

[AZ-Tax]

Yes, I know this is an old post but a question...

If the teaching/volunteering is related to a Religious Education class for which the TP (non certified teacher actually a lawyer by trade) donated their time and some supplies, does that qualify for "Educator Exp Deduction" or a donation on Sch A?

[BP.]

See pub 17, p. 133 for definition of eligible educator. No deduction for value of time spent volunteering, just for supplies expense.

[JohnH]

Each year when we take the Educator Deduction, I think how nice it would be if my wife could limit what she spends to only $250 per year. I'd be happy with $250 per quarter.

[AZ-Tax]

From Pub 17 pg 133

See pub 17, p. 133 for definition of eligible educator. No deduction for value of time spent volunteering, just for supplies expense.

"An ordinary expense is one that is commons and accepted in your "educational field". A necessary expense is one that is helpful and appropiate for your profession as an educator."

So is my client the Attorney; 1 in the education field? or 2 in the educator profession?

I am not beating a dead dog but taking the deduction on front pge of form 1040 reduces AGI, taxable income therefore increases my clients credits while taking a deduction on Sch A will not increase credits and potentially may lower the taxable income.

[BP.]

"An ordinary expense is one that is commons and accepted in your "educational field". A necessary expense is one that is helpful and appropiate for your profession as an educator."

I am not beating a dead dog

I think you gotta go by the paragraph that preceeds your quoted passage and see if your client even meets the definition of an "eligible educator" for the purpose of this specific deduction.

[AJsTax]

requirements

they must meet the K - 12 grade level and minimum number of hours requirements also.

[dyne2]

teachers $250 deduction

IRS issued a message which said teachers would be expected to be able to prove
that they spent $250 or more if they claimed this deduction.