Educator Expense Deduction Re-Enacted For 2004
If you are an educator, you can deduct $250 for expenses you paid for the purchase of books and classroom supplies. You can claim this deduction even if you do not itemize your deductions.
The original educator expense deduction expired at the end of 2003. The Working Families Tax Relief Act of 2004, however, reinstated the expense deduction for fiscal years 2004 and 2005.
To claim the deduction, you must be an educator at an elementary or secondary school. The school can be either public or private. You must also have worked at least 900 hours at the school during 2004 and have been a teacher, aide, instructor, counselor or principal.
Expenses that qualify for the deduction include unreimbursed expenses you paid for:
- Books
- Supplies
- Computer equipment
- Other miscellaneous equipment
- Supplementary materials used in the classroom
If you are involved in physical and health education, you can also deduct unreimbursed expenses for related only to athletics.
While the $250 deduction is not large, every little bit helps in lowering your tax bill. Small deductions can add up to significant savings.