As the new school year begins, the Internal Revenue Service (IRS) is reminding teachers to save their receipts for qualified expenses including books, supplies, and computer equipment as these out-of-pocket expenses may lower their 2003 taxes.
The IRS suggests that educators keep records of qualifying expenses in a folder or envelope with a label such as “Educator Expenses Deduction,” noting the date, amount, and purpose of each purchase.
Taxpayers may subtract up to $250 of qualified expenses. In his budget for next year, President George W. Bush has proposed increasing this deduction to $400.
Educator Expense Deduction