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