Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-03-2014, 10:42 PM
Junior Member
 
Join Date: Mar 2014
Posts: 2
Beyond the $250 Educator Expense

I am a teacher and have incurred educators' expenses beyond the $250. I've spent $700 as a new K teacher. These expenses are "ordinary and necessary" for my job as a teacher.

Should I consider the remaining $500 as UNREIMBURSED EMPLOYEE BUSINESS EXPENSES subject to the 2% floor?

A friend told me that I can only do that:

1. if these expenses were required by the school to purchase them but was I not reimbursed AND
2. if I provide a letter from the school that says that I was required to do so but the school was not able to reimburse me.

Is that somebody correct, must I do those things?

From what I understand: An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary.

Based on the definition of the "ordinary and necessary" I therefore conclude that friend is wrong. AND that I can apply the $500 as an Unreimbursed itemized deduction. Am I correct? Please I need your opinion on this. I need your confirmation, other opinion or any advise.

Also another friend told me that I can only use one of the deductions either I go for the Educator Expense or the UNREIMBURSED EMPLOYEE BUSINESS EXPENSES. Can I go for both? Meaning can I apply $250 as Educator Expense for line 23, then I apply the remaining $500 to the unreimbursed employee business expenses.

Thank you for your time, hopefully you can drop a line or two. I am so confused



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-15-2014, 08:33 AM
StinkyTaxLaw
 
Posts: n/a
If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. If you file Form 1040A, you can deduct these expenses on line 16. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses.

Eligible educator. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year.

Qualified expenses. Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.
Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts.

•Excludable U.S. series EE and I savings bond interest from Form 8815.
•Nontaxable qualified state tuition program earnings.
•Nontaxable earnings from Coverdell education savings accounts.
•Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1.

Educator expenses over limit. If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit.

Reference: IRS Publication 529



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Payroll Tax Expense atomicx914 Income 0 01-14-2014 12:45 PM
Job hunting lawyers fee expense Joemangee Itemized Deductions 1 04-01-2011 09:45 PM
Auto Expense question [email protected] Auto Expenses 1 10-20-2010 08:41 PM
Deduction for Educator Expense Samatg General 0 03-15-2007 08:00 PM
Sales Tax, Higher Education, Educator Expense Deductions Samatg General 0 01-23-2007 07:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning