Educator Expense Tax Deduction

Eligible educators can deduct up to $250 for expenses on 2007 tax form.

Internal Revenue Service

Look for the “Educator Expense” line item when you prepare your taxes for 2007. You can deduct qualified expenses up to $250 even if you do not itemize deductions on Form 1040, Schedule A.

If you are an eligible educator, you can deduct up to $250 on the 2007 federal tax form for unreimbursed expenses you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials used in the classroom.

For teachers in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics.

You can deduct these expenses even if you do not itemize deductions on Form 1040, Schedule A. This deduction is for expenses paid or incurred during the tax year. The deduction is claimed on line 23 of Form 1040.

You are an eligible educator if, for the tax year, you meet the following requirements:

• You are a kindergarten through grade 12:
  • Teacher
  • Instructor
  • Counselor
  • Principal, or
  • Aide
• You work at least 900 hours a school year in a school that provides elementary or secondary education, as determined under state law.

Qualified expenses are deductible only to the extent the amount of such expenses exceeds the following amounts for the tax year:

• The interest on qualified U.S. savings bonds that you excluded from income because you paid qualified higher education expenses,
• Any distribution from a qualified tuition program that you excluded from income, or
• Any tax-free withdrawals from your Coverdell Education Savings Account.

For additional information regarding personal credits and any alternative minimum tax (AMT), refer to Publication 17, Your Federal Income Tax.

 This article, and hundreds more, can be found in the “Member Library” section on the NEA Member Benefits Web Site at www.neamb.com.