New Tax Deduction for K-12 Educators

The Internal Revenue Service advises teachers to save their receipts for purchases of books and classroom supplies. These out-of-pocket expenses may lower their taxes, thanks to a recent change in the law.

The deduction is available to eligible educators in both public and private elementary and secondary schools. They must work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide.

Taxpayers may subtract up to $250 of qualified expenses when figuring their adjusted gross income (AGI). They will not need to itemize deductions to get this benefit.

Details on this and other new tax law changes are in IRS Publication 3991, "Highlights of the Job Creation and Worker Assistance Act of 2002," available on the IRS Web site at www.irs.gov or by calling 800-TAX-FORM (800-829-3676). From www.irs.gov.

This is not intended to be tax advice. See a tax professional or the IRS for complete information.