teacher expenses

[Possi]

Since teachers can take up to $250 above the line for expenses, many are wanting to take their internet and cell phones this year due to teaching from home. 

Is that allowed? One just asked me, and I am firm about no home office expense. Am I cheating them by not taking internet and cell? 

Since misc Sch A deductions went away, $250 limit stands, correct? No padding the Sch A with the balance, correct?

[Yardley CPA]

Here's the excerpt from the IRS webpage:

Qualified expenses are amounts you paid or incurred for participation in professional development courses, books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health or physical education, the expenses for supplies must be for athletic supplies. Qualified expenses also include the amounts you paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of coronavirus. 

I don't know that internet or cell phone expenses actually qualify (maybe they fall under computer equipment :-)) as a deduction normally but given the COVID situation and the relatively small amount of the , $250, I wouldn't be overly strict.  Maybe I let my personal feelings influence my decision but that's my thoughts.  

[Possi]

57 minutes ago, Yardley CPA said:

Here's the excerpt from the IRS webpage:

Qualified expenses are amounts you paid or incurred for participation in professional development courses, books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health or physical education, the expenses for supplies must be for athletic supplies. Qualified expenses also include the amounts you paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of coronavirus. 

I don't know that internet or cell phone expenses actually qualify (maybe they fall under computer equipment :-)) as a deduction normally but given the COVID situation and the relatively small amount of the , $250, I wouldn't be overly strict.  Maybe I let my personal feelings influence my decision but that's my thoughts.  

I wouldn't take them normally, either. But now with COVID and being forced to work from home, I'll take it. Thanks for chiming in!

[TAXMAN]

250 is such a small amount to begin with that most teachers burn't that much in first 2-3 months. I have no problem with it. Your mileage may be different.

[Possi]

24 minutes ago, TAXMAN said:

250 is such a small amount to begin with that most teachers burn't that much in first 2-3 months. I have no problem with it. Your mileage may be different.

I know, it was probably not a shining star of a question. 

[Lion EA]

Never had a teacher who spent less than $1,000/year on her classroom. And, you could take computer, continuing ed, etc. Now add PPE, too. Some teachers have two classrooms now, one at school and one on the wall behind/table in front of them at home. Just take the expenses you're most comfortable with up to $250. I can't imagine you'll have to stretch your comfort level.

[RitaB]

Wow, when I tell them it's up to $250, what did you actually spend?  The range is $0 - $67.78.  

I must not have the shining stars of the educators.  

[Lion EA]

Your schools must provide more than ours! My hubby bought paper to cover bulletin boards/walls, a three-year rotation of choral-related educational bulletin board displays, pencils/pens/erasers, music staff paper, spray cleaner/paper towels, lots of Kleenex, rolls of quarters to give kids public bus money to get to evening performances, green ties/scarves for performances (not counting the donations of white shirts and black slacks he'd solicit from teachers/staff/friends), various rewards such as coupons for ice cream at lunch, .MP3 and other audio aids, continuing education every year, etc. He got off easy. Other teachers bought bookcases, books, videos, notebooks, etc. I had one teacher who was buying underwear/socks for a couple of her students! I think the average for my teacher clients is about $1,250, so coming up with $250 is fast and easy.

[Abby Normal]

34 minutes ago, RitaB said:

Wow, when I tell them it's up to $250, what did you actually spend?  The range is $0 - $67.78.  

I must not have the shining stars of the educators.  

Prices in TN seemed to be about 20-40% of what they are where I live, when I visited a few years ago. I got a $40 steak for $16 in TN! I would have paid more for that steak in a local butcher shop than I paid for it in a restaurant in TN. Now, admittedly, we weren't in the big cities of TN, but I don't live in a big city in MD, either.

[Possi]

43 minutes ago, RitaB said:

Wow, when I tell them it's up to $250, what did you actually spend?  The range is $0 - $67.78.  

I must not have the shining stars of the educators.  

Well, we can bump it up, now, Sister! COVID working from home, and don't even ask! Internet... BOOM... there ya GO....

[Sara EA]

I don't know how you would separate their school internet and phone use from their personal use, so I wouldn't do it.  I could see teachers spending less this year because with virtual learning they probably aren't buying special books, kleenix, toys, etc.  Most of my teacher clients usually spend way more than the $250.  Some work in districts that reimburse everything, but others even have to buy their own printer paper once they use up their meager allotment.

[Yardley CPA]

11 hours ago, Sara EA said:

I don't know how you would separate their school internet and phone use from their personal use, so I wouldn't do it.  I could see teachers spending less this year because with virtual learning they probably aren't buying special books, kleenix, toys, etc.  Most of my teacher clients usually spend way more than the $250.  Some work in districts that reimburse everything, but others even have to buy their own printer paper once they use up their meager allotment.

Sara...just to clarify, you wouldn't take the $250 expense deduction for the teacher given Possi's question?

[Gail in Virginia]

Facts and circuses, IMO.  If they are using the same internet and cell phone they have always used, I would find it hard to justify deducting it this year,  However, if because they have to stream video and do 'Zoom" type meetings with classes,and therefore they had to purchase more bandwidth, pay overages, or otherwise change their plan to accommodate a different type of teaching, I would.  YMMV.

[Margaret CPA in OH]

"Facts and circuses, IMO"  Love this phrase!  And I agree about any upgrade expenses needed and not reimbursed by the school.  I actually discuss this with some clients that always want to charge the entirety of their cell phones and internet.  Would or did they have this same access/coverage before work?  Would they downsize to less bandwidth or cheaper service (2gig vs unlimited) on the phone if the business disappeared? 

[Lion EA]

Fact & circuses. Love that, Gail.

I had a teacher add another line on her cell service at an extra $14.95/month so she could keep her personal # personal. My hubby had to buy Zoom, because the free version cuts off after 40 minutes. My NY/CT-ATP group paid $39.95/month for ClassMarker testing/certificate software for our on-demand tax courses. One of my older teachers had one phone line at home that included her computer (old-fashioned, I know) and had to add internet for the first time. I see all kinds of extra expenses for teaching remotely, especially software for specific subjects or projects that has no personal purpose. And, yes, those expenses will go away eventually. I'm canceling ClassMarker today, because NY/CT-ATP decided to stop on-demand classes this month and resume live classes (we hope) in September.

Facts & circuses. Ask questions.

[Sara EA]

12 hours ago, Yardley CPA said:

just to clarify, you wouldn't take the $250 expense deduction for the teacher given Possi's question?

No I wouldn't.  Extra bandwidth and software maybe if they're not in the school building.  Possi's excerpt states the items/services must be used "in the classroom."  If they're teaching from home, I guess that's the classroom.  For one of my business clients an auditor wanted to see the whole year of cell phone bills.  There were four on there, but she allowed only the one for his two businesses, no percentage of the others.  Internet was taken as a ratio for OIH expenses and that was okay.  He was a Sch C though, not an A.  I only mention this to show that auditors do pay attention to these items that have fuzzy personal/business lines.  Has anyone actually seen a audit include educator expenses?  My hunch is that the tax on $250 isn't worth an auditor's time, but still....

[Lion EA]

One professional development course can cost over $250, and all my teacher clients took courses in how to teach remotely.

[Terry D EA]

I am a teacher by day. I can tell you that the majority of us spend far more than 250.00 per year. Many of us have purchased equipment necessary to work from home during the pandemic and for that reason alone have spent more the 250.0. Needless to say, the limit on that deduction is a joke and really makes little difference in the refund or amount to pay. While I love my teaching job, it is a thankless job at the same time. I could go on and on about this but wouldn't do anyone any good. 

[RitaB]

I was a high school teacher for eight years.  I did spend money out-of-pocket every year, probably under $500.  I think the teachers whose returns I prepare are not really the most philanthropic.  I know many teachers are, including my daughter-in-law.  Did not mean to disparage the entire profession.

Seems like I get a lot of pastors who really hate paying Caesar, too.  Is it me???  A few that don't tithe.  It always makes me want to ask them if they trust God or not.

I will say I really regret rolling my teacher retirement monies into an IRA.  That money is probably worth five times as much now, but TN Consolidated Retirement System till I die would have been so much better.  Regrets, I've had a few...

[Lee B]

Rita, I really like your insight on all the stuff we deal with