Question

Andy teaches high school math for the Metro School District. In 2018, she has incurred the following expenses associated with her job:

Noncredit correspondence course on history $ 800 Teaching cases for classroom use $1,900

Andy’s employer does not provide any funding for the correspondence course or teaching cases.

1. Use an available tax service to identify the amount she can deduct, if any, as a “For AGI” deduction and the amount, if any, as a “From AGI” deduction.

2. Prepare a tax research memorandum for the file.

Answer 1

Post TJCA, You can no longer claim a deduction for unreimbursed employee expenses unless you fall into one of the following categories of employment, or have certain qualified educator expenses.

• Armed Forces reservists.

• Qualified performing artists.

• Fee-basis state or local government officials.

• Employees with impairment-related work expenses.

Unreimbursed employee expenses for individuals in these categories of employment are deducted as adjustments to gross income.

Educator Expenses

If you were an eligible educator in 2018, you can deduct up to $250 of qualified expenses you paid in 2018 as an adjustment to gross income on Schedule 1 (Form 1040), line 23, rather than as a miscellaneous itemized deduction. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses.

Eligible educator.

An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year.

Qualified expenses.

Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense doesn’t have to be required to be considered necessary.

Qualified expenses also include those expenses you incur while participating in professional development courses related to the curriculum in which you provide instruction. It also includes those expenses related to those students for whom you provide that instruction.