Line 23 Educator expenses

Form 1040 Line 23 Educator expenses Deduction

An eligible educator may deduct up to $250 of qualified out-of-pocket expenses in Line 23. If married couple is filing jointly and both spouses are eligible educators, maximum deduction is $500. However each spouse is limited to $250.

Eligible Educator: 2 requirements

1. A kindergarten thru 12th grade - teacher, instructor, counselor, principal, teacher's aide

2. Work at least 900 hours during school year

Qualified expense: ordinary and necessary

Included: books, equipment, computer software, classroom supplies, other supplemental instructional materials and services used in the classroom

Not included: home schooling

Qualified expenses must be reduced;

1. Reimbursements received that not included in W-2
2. Excludible U.S Savings Bond interest from Form 8815
3. Nontaxable earnings from Coverdell ESAs and QTPs

Tax Tip:

If an eligible educator spends out-of-pocket expenses more than $250, he/she may deduct the balance more than $250 on Schedule A.