Can I Automatically Deduct Educator Expenses?
- You must work with students in kindergarten through 12th grade as either a teacher, instructor, counselor, principal or aide. In addition, you must work for at least 900 hours in a school providing primary or secondary education. If you did not work at least 900 hours during the year, which comes out to 22.5 40-hour weeks, you cannot claim the educator expenses deduction no matter how much you spend on students. You can only claim expenses you paid during the year.
- Add up the amount you spent on books, supplies, computer equipment and other necessary supplies you used in the classroom to find your total expenses. Next, subtract any interest on qualified U.S. savings bonds that you excluded from your income because you paid for higher education; any distribution from a qualified tuition program that you excluded from income; and any tax-free withdrawals from your Coverdell Education Savings Account. Finally, use the smaller of the result or the annual limit, which equals $250 as of 2011. For example, if you have $500 in educator expenses but took out $300 from a qualified tuition program, your deduction would be $200.
- If both spouses qualify to claim the educator expenses deduction, the IRS doubles the deduction limit to $500. However, only $250 per spouse can be used to reach the higher total. For example, if the husband has $500 in educator expenses but the wife only has $100, even though their total is $600, they could only claim a $350 deduction because only $250 can come from each spouse.
- The IRS classifies the educator expenses deduction as an adjustment to income, which means you can claim the write-off without having to itemize your deductions and give up your standard deduction. You do, however, have to file either Form 1040 or Form 1040A. On Form 1040, report the amount of your educator expenses deduction on line 23. If you use Form 1040A, report the amount of the deduction on line 16. This reduces your taxable income for the year.