2006 Teachers Deduction
Congress passed a tax relief law at the last moment that restored the 2006 Teacher’s deduction. The change was made after tax forms were mailed.
2006 Teachers Deduction
Just before they closed down shop for the year, the Senate passed a bill that extended the popular teacher’s deduction for two more years. This change was made so late that the tax forms were already mailed out and a supplemental form was required to inform taxpayers of it and how to claim it. The teacher’s deduction had been in place a few years ago, but it expired and many teachers did not realize that it was back in place.
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The 2006 teacher’s deduction was an above the line deduction. This means that it could be claimed as a deduction even if deductions were not itemized and the standard deduction taken. The deduction was applicable to all elementary and secondary school teachers and allowed them to deduct up to $250 per year for any out of pocket costs for school room supplies they might have purchased for use in the classroom.
Many teachers, in the course of the school year, use their own money to purchase various items for the classroom. The intent of this deduction was two fold. It not only compensates them for this work related expense, but encourages them to improve their classrooms by purchasing materials that might not otherwise be available to the students. This is a good example of the tax codes being used to serve a purpose other than just raising government revenue.
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The deduction may be taken by any educator who works at least 900 hours during the school year. This includes counselors and teacher’s aides who work in grades k-12 in any public or private school. The deduction may be taken for any supplies that can be considered education materials or supplies including books and even computer paper. In some cases, professional improvement courses and training may be included.
The President signed the bill into law on December 20, 2006 and it is good for the 2006 and 2007 tax years. It recognizes that many school systems are strapped for cash and as a result have had to cut back on supplies. Teachers have picked up some of the slack out of their own pockets, and the 2006 Teacher’s Deduction is one way of rewarding their dedication.