Tax planning for teachers
thazna janeesh (3 Points)
05 May 2021
tax planning for govt. and aided college teachers
4 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 05 May 2021
Invest in 80C bonds, invest in insurance premiums, mutual funds etc.
The Educator Expense Tax Deduction
The primary tax break for teachers is the Educator Expense Deduction. To qualify for the Educator Expense Deduction for a given year, you must meet three criteria:
You worked as a teacher, instructor, counselor, principal or aide for students in kindergarten through 12th grade.
You worked at least 900 hours at a school certified by a state to provide elementary or secondary education. This applies to public, private and religious schools.
You spent money on qualified educator expenses.
The first requirement prevents college or other post-secondary teachers from claiming the deduction, while the second means homeschooling parents can't take it.
Qualifying educator expenses
Examples of items eligible for the Educator Expense Deduction include:
books,
school supplies,
computer equipment (webcams, headset) and software,
athletic equipment for physical education teachers, and
generally, any purchased item that is appropriate for and helpful to the students and classroom.
You can deduct classroom expenses only if you haven't received reimbursement for them. If a school, teachers union, parent-teacher association or someone else paid you back for the money you spent on classroom materials, you can't deduct it.
COVID-19 related expenses
For tax year 2020, personal protective equipment (PPE), sanitizer, plexiglass, and disinfectant used to prevent the spread of COVID-19 are allowed as deductions under the Educator Expense Deduction.
The Educator Expense Tax Deduction
The primary tax break for teachers is the Educator Expense Deduction. To qualify for the Educator Expense Deduction for a given year, you must meet three criteria:
You worked as a teacher, instructor, counselor, principal or aide for students in kindergarten through 12th grade.
You worked at least 900 hours at a school certified by a state to provide elementary or secondary education. This applies to public, private and religious schools.
You spent money on qualified educator expenses.
The first requirement prevents college or other post-secondary teachers from claiming the deduction, while the second means homeschooling parents can't take it.
Qualifying educator expenses
Examples of items eligible for the Educator Expense Deduction include:
books,
school supplies,
computer equipment (webcams, headset) and software,
athletic equipment for physical education teachers, and
generally, any purchased item that is appropriate for and helpful to the students and classroom.
You can deduct classroom expenses only if you haven't received reimbursement for them. If a school, teachers union, parent-teacher association or someone else paid you back for the money you spent on classroom materials, you can't deduct it.
COVID-19 related expenses
For tax year 2020, personal protective equipment (PPE), sanitizer, plexiglass, and disinfectant used to prevent the spread of COVID-19 are allowed as deductions under the Educator Expense Deduction.
GalyBlasty
(callday)
(22 Points)
Replied 29 September 2022
Wow, I think you know all the items needed now. And I hope you manage to create a good plan. However, the value of the plan and many factors may depend on the state. Some states have another evaluation system, and it is better to consult with someone in the law sphere to clear everything up. A successful plan involves a lot of preparation and consideration, and the more carefully you calculate everything, the more realistic your plan is. Sometimes it is better to order a plan because t may take time and nerves. More about creating a financial plan with the help of professionals here mcgeewm.com
Recent Topics
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
Related Threads
CAclubindia
