2014 Tax Year Above the Line Tax Breaks for Educators

Many taxpayers for the 2014 filing year will get to take advantage of the tax breaks that were extended by Congress.  There are a few of these tax breaks for the upcoming tax season that can help to reduce the taxpayers adjusted gross income (AGI) which are also referred to as above the line deductions, and the taxpayer does not have to itemize in order to take advantage of the above the line deduction to reduce adjusted gross income.  Educators can take advantage of this extended tax break for the 2014 tax year as well.

To clarify, there are two types of deductions that the IRS allows, above the line deductions and below the line deductions.  The line refers to the taxpayers adjusted gross income line total.

Above the line:  these deductions are claimed on page 1 of the 1040 and this type of deduction reduces the taxpayers AGI, and the taxpayer does not have to itemize in order to take advantage of this type of tax deduction.

Below the line:  these deductions are claimed on page 2 of the 1040 and this type of deduction reduces taxable income.

The educators tax break extension will be very beneficial to educators for the 2014 tax filing, as this allows the educator to deduct up to $250 of any unreimbursed expenses.  Expenses are those amounts that an educator has paid for books, supplies, computer equipment and related software, other equipment, and supplementary materials that were used in the classroom.  This deduction is taken on line 23 of the taxpayers form 1040 or line 16 of the form 1040A.   This above the line deduction will help educators for the 2014 tax filing year as many schools have experienced budget cuts in many areas that have caused teachers to have to pick up the slack in order to have enough classroom supplies.

Educators should remind their tax professional that they wish to claim this much deserved tax break for the 2014 tax filing year as well.

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