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