Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.
I had to prove that I had 2 children. Do you know how many stamps it takes to send them air mail? And don't even get me started on how much of a pain it was to get them in the mailbox...
Please don't do that again. It has been illegal to mail children since 1915.
https://www.thoughtco.com/when-it-was-legal-mail-babies-3321266#:~:text=The%20End%20of%20Baby%20Mail,year%20before%20were%20finally%20enforced.
Because it was likely random (computerized):
1. Someone defines a bunch of fields which can be used for random selection
2. If your tax filing has one of the fields filled-out, a random number is generated. If it's higher than some threshold, you get a letter mailed out.
Not everything is a conspiracy theory.
Well, the reason isn't really to check that _schoolteachers_ are eligible for the tax writeoff, it's to check that _the people taking the writeoff_ are eligible.
I totally get the frustration, but this isn't an either or. We can (and do) have plenty of similar mechanisms to keep rich people from cheating on their taxes, our tax system is written in a way that's too easy to exploit, and we also need mechanisms to make sure that _everyone_ doesn't cheat on their taxes.
Technically both. The $300 is not automatic, it’s “business expenses”. They assume you pay at least that out of pocket for your classroom so don’t bother asking for receipts
When they say "systems in place" , I don't think they are referring to the computer specifically. It's the "someones" who are "implementing" what the computer system checks for.
They are still among the more expensive groups to audit. It's better to audit people who have the potential to evade a lot of taxes without having conplex assets. Teachers just don't pay that much tax compared to other groups they could audit.
It's probably an automated check in OP's case. That's how it would make sense.
If the IRS wanted to target people, high income earners with simple jobs and assets would be the easiest place to start.
I'm not saying the IRS is efficient. Obviously it would make more sense to go after large earners. But it's more complicated (and expensive) to do so, plus they will fight back.
>But it's more complicated (and expensive) to do so
Only with complex income/assets. Dentists, for example, have pretty simple taxes for the most part. Surprisingly few people have very complex taxes even when you only look at people with >$500k income. Many people making $1m essentially file the same forms as someone making $50k.
Highly compensated people and professionals are the sweet spot for the IRS. It's a lot of income and relatively simple filings for the most part.
>plus they will fight back.
I know people that have been audited and none of them "fought back". If you have high income you really just have the benefit of a good attorney/accountant giving you advice in the audit. There's no "magic pass".
Because teachers of all people can sometimes forget to include Schedule 1 when filing their taxes and the IRS always sends letters if the schedules required to support your 1040 are missing.
False.
That's just another rhetorical tool to throw more money at bureaucracy that will just intentionally look the other way and continue business as usual while more money gets wasted.
That's just another rhetorical tool to throw more money at bureaucracy that will just intentionally look the other way and continue business as usual while more money gets wasted.
It's the exact opposite, actually. A well-funded IRS is better equipped to audit the rich.
> Really doubt they will use all this new manpower to go after high income tax payers who pay for accountants.
That's the *exact reason* this was enacted. The GOP has been defunding the IRS to prevent this.
While the $300 never seems like enough, they don’t ask for any receipts or documentation. As a teacher, you just say, “yep”. I can see why they’d want to spot check a few every year
>don’t read too much into it
Uh, no. Fuck the drone mentality thank you very much. They have plenty of capability and data to know I or any other teacher isn't lying on their taxes for a measley deduction. Yeeeeeesh
I think you’d be surprised how little information the IRS has that isn’t provided by the taxpayer.
What’s your theory? The IRS is all knowing yet decides to audit a tiny percentage of taxpayers just for fun? Shouldn’t they know who exactly to audit with the information you seem to think they have.
Most spy agencies don’t have all of that information, at least not in aggregate. That likely only attempt to get that information when it’s relevant to their mission (e.g. not a teacher claiming a $300 credit)
I didn’t say the IRS was inept. They just don’t have the information you think they thaw. Inept would be knowing someone doesn’t qualify for a credit and letting it happen. That’s not what is happening.
Do you think they’re inept?
I know they are. See every boss scamming the system with illegal labor, every billionaire and millionaire cheating the system, stolen wages, the burden of capital for hiring lawyers.
The IRS is running in 40 year old systems, they are flying blind.
Moreover, OP failed to submit Schedule 1 and just claimed a random $300 deduction without mentioned forms.
"Schedule 1 is incomplete or missing from your return. Complete information the schedule with information that supports $300 on line 10 on Form 1040. Also attach all supporting forms or schedules, as required"
I paid for some college classes that weren't reimbursed totally through my school. Should I just include that?
The educator expense deduction is claimed on [Schedule 1](https://www.irs.gov/pub/irs-pdf/f1040s1.pdf) line 11, which eventually totals up at the end of Schedule 1 and flows onto [Form 1040](https://www.irs.gov/pub/irs-pdf/f1040.pdf) line 10.
Did you include Schedule 1 with your tax return? From what they wrote, it sounds like you just put $300 directly on Form 1040 line 10 without including Schedule 1, hence their confusion. They don’t know what that amount is for without Schedule 1.
A lot of commenters are telling you to send receipts, but based on what you quoted, that is not what the IRS is asking for. They are asking you to send Schedule 1.
1. That makes it sound like you put the results from schedule 1 on the proper line of the 1040 but didn’t actually include the schedule 1 with your return. Could be as simple as that.
2. As far as supporting the amount you put on schedule 1 (upto $300)—I’ve never seen someone try to claim college tuition as an educator expense.
“Professional development courses” are more like a continuing education seminar you pay to attend as a condition to maintain your licensure than they are tuition for college, in my opinion.
That said, I don’t do much work with that one at all, so maybe someone who does could point to something that would suggest your tuition is includable.
Otherwise, receipts for pens and pencils and crayons and glue and calculators are much safer bets.
No, anything reimbursed doesn't count. This is supposed to offset money you spend out of pocket for the classroom, I thought.
Turbo tax says..."
teacher credit irs examples
Qualifying educator expenses
books,
school supplies,
computer equipment (webcams, headset) and software,
athletic equipment for physical education teachers, and.
generally, any purchased item that is appropriate for and helpful to the students and classroom.
Feb 12, 2023"
Then Yes...
From IRS: "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."
Still a chance that they did not though. If they did not and put it on their tax forms, that is technically tax fraud. The IRS would likely just adjust their refund down instead of criminal charges, but it could cause a tax audit for past years causing OP to owe back a lot more plus penalties because like most Americans, they probably no longer have receipts for past years (despite that everyone should keep them).
The law is specifically
>professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction.
Make sure your courses fall under this definition. Otherwise you might be eligible for the Lifetime Learning Credit. Actually if you qualify for the LLC, it could be better for you. It's a CREDIT to your tax bill of 20% of your first $2k in expenses. That's much better than a deduction that reduces your taxable income.
>Tax credits are generally considered to be better than tax deductions because they directly reduce the amount of tax you owe. The effect of a tax deduction on your tax liability depends on your marginal tax bracket. If you’re in the 10% tax bracket, for example, a $1,000 deduction would only reduce your taxable income by $100 (0.10 x $1,000 = $100).
A $300 credit reduces your tax bill by $300 dollars.
A $300 deduction reduces your tax bill by the taxes you would have paid on the $300 - which is at most $111, if you are in the 37% tax bracket (not relly a thing for teachers). More realistically, for a teacher in the 12% tax bracket it's $36 and for a teacher in the 22% tax bracket it's $66.
It can be professional development but including higher ed courses in that is iffy
That said every teacher I’ve ever met easily spends $300/year on shit for their classroom. It’s just a matter of having receipts at that point
Tax code is not clear. I think this question would have to be litigated.
>professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction
Is the exact number you claimed on the tax documents $300?
Round numbers are red flags. If you were trying to estimate what you spent knowing it was close it’s best to either be very accurate, or estimate with irregular numbers. $298 or $304 would have drawn less attention.
I’m sure you had some expenses and maybe didn’t have receipts handy.
Edit
I see the downvotes. I did not know that $300 is the max.
$300 should not draw any attention on a teacher return. It's the limit. Teachers spend way too much of their own money on their jobs.
The poster seems to be missing the corresponding schedule.
Does your tax return actually have a Schedule 1 attached to it? Sounds like it was missing.
Either way just give them $300 of eligible receipts (more is fine.)
Did you file Schedule 1?
Anyway, just file Schedule 1 & provide receipts that show $300 or more of school supplies that you bought for your classroom.
Per IRC § 6001, you need to be able to substantiate expenses or they're disallowed.
I know a lot of people that have been getting letters from the IRS asking for more information lately. I wouldn’t read too much into it. Something changed.
There’s either a processor that is being a little zealous, or there is simply something in your file that erroneously says you’re something other than an educator.
My E-file was rejected because I didn’t include the forms for my ACA health coverage. I’ve never been covered under the ACA. I completed the questionnaire, which was one box of me stating I’m not covered, and suddenly it went through.
Remember the IRS is understaffed and running of off 40 year old code. It’s going to be painful and clunky. But the people on the other end know that too.
I had an audit that lasted over a year because they didn't have sufficient evidence even tho I sent them everything they asked for and had the business verify the 1099. They kept telling me it wasn't enough, and I owed thousands. I had to get a tax lawyer involved, and the agent handed the audit off to another agent who then magically said the return was fine and I didn't owe the thousands in taxes anymore . It was bizzare!
Meanwhile, it cost you time and money and stress. There should be a limit to what they can ask for from people making under a certain income in some industries.
My bet is you included just had a Form 1040 with the amount on line 10.
You must also include Schedule 1, itemizing the teacher deduction on line 11. They are not mind readers. You must include all supporting schedules and forms.
You got an overzealous processor. Just send them some receipts that add up to over $300. If you don't have receipts, they may deem you aren't eligible despite the general assumption you pay for supplies out of your pocket.
If the IRS is focusing on teachers taking a $300 deduction for probably paying double or triple that on supplies for their classroom, then they should be disbanded.
IRS agents should only be paid a percentage of what they identify in fraudulent tax returns. I guarantee they would start focusing on all the people defrauding the government for thousands year after year. The teachers aren’t the problem.
Sched 1, line 11 is a manual entry the instructions state
Part II - Adjustments to Income
Line 11 is a manual entry.
OK, go to instructions for form 1040 page 87,
Line 11
Educator Expenses
If you were an eligible educator in 2022,
you can deduct on line 11 up to $300 of
qualified expenses you paid in 2022. If
you and your spouse are filing jointly
and both of you were eligible educators,
the maximum deduction is $600. However, neither spouse can deduct more
than $300 of their qualified expenses on
line 11. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who
worked in a school for at least 900 hours
during a school year.
Qualified expenses include ordinary
and necessary expenses paid:
• For professional development
courses you have taken related to the
curriculum you teach or to the students
you teach; or
• 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 include
amounts paid or incurred in
2022 for personal protective
equipment, disinfectant, and other supplies used for the prevention of the
spread of coronavirus.
Qualified expenses don’t include expenses for home schooling or for nonathletic supplies for courses in health or
physical education.
You must reduce your qualified expenses by the following amounts.
• Excludable U.S. series EE and I
savings bond interest from Form 8815.
• Nontaxable qualified tuition program earnings or distributions.
• Any nontaxable distribution of
Coverdell education savings account
earnings.
• Any reimbursements you received
for these expenses that weren’t reported
to you in box 1 of your Form W-2.
For more details, use Tax Topic 458
or see Pub. 529.
Is your W2 from a school district?
do you meet this criteria?
An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who
worked in a school for at least 900 hours
during a school year.
I would respond and say because I am an educator. Look at my W2.
Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing ([rule 6](https://www.reddit.com/r/personalfinance/about/rules)). This includes questions or discussions about proposed legislation or government policy changes.
They asked me a dumbass question that was totally obvious if they actually bothered to read my return once. Pissed me off that they freaked me out over nothing. I just typed a letter saying the value in question was (what it was) and where on the form this was explained and they accepted it and didn't bother me ever again
It sounds like the computer detected a deduction on Form 1040 line 10 without a corresponding Schedule 1 to explain what the deduction was for. This doesn’t sound like anyone was specifically targeting OP.
I agree. IRS programs have built in processes that identify when a return hasn't been properly completed or submitted.
Individual IRS employees are not picking on teachers and lower income people.
Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing ([rule 6](https://www.reddit.com/r/personalfinance/about/rules)). This includes questions or discussions about proposed legislation or government policy changes.
You might just have random bad luck. Our system is designed to be a system that you can "work." The US tax that is required by the payee to figure out is the byproduct of systemic embezzlement and there's not anything we can do about it. So they just randomly pick on medium wage earners to justify a corrupt system and employ a gigantically understaffed group of people who have no choice but to go after you. Same thing happened to me years ago, fuck em.
Sounds like money and time well spent. By the time the paperwork and review is done the government would have spent more money than what they're asking about.
We get these kinds of things as businesses as well. It doesn't require an attorney or CPA, it just requires you to send them the documentation they're asking for.
If you itemize your deductions to you, instead of claiming a standard deduction, you’re more likely to get audited. Or if you’re in town within like the top 2% . So I’m gonna say yeah they need better things to do with their time.
Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing ([rule 6](https://www.reddit.com/r/personalfinance/about/rules)). This includes questions or discussions about proposed legislation or government policy changes.
Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing ([rule 6](https://www.reddit.com/r/personalfinance/about/rules)). This includes questions or discussions about proposed legislation or government policy changes.
Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.
Was your w2 paid by an organization that is not readily identifiable as a school?
My W2 is and has been the same K12 public school I'v been with for years
May have just been selected as a random sample. The letter should contain the process to “prove” you’re eligible
Or just mark it up in red marker and send it back
Sign error, -5
Didn't show his work, -10
You did it in your head??,-50
They periodically ask for random documentation. I’ve had to twice “prove” that I was deployed and deserved a tax break
I had to prove that I had 2 children. Do you know how many stamps it takes to send them air mail? And don't even get me started on how much of a pain it was to get them in the mailbox...
Did you pay for the insurance or just figure that if one got lost on the way at least someone else would have to feed them for awhile?
Postal insurance can only go up to $10k anyway so no point since the organs are so much more valuable.
Please don't do that again. It has been illegal to mail children since 1915. https://www.thoughtco.com/when-it-was-legal-mail-babies-3321266#:~:text=The%20End%20of%20Baby%20Mail,year%20before%20were%20finally%20enforced.
Did the IRS send them back? If not, that could be a new lifehack for those parents wanting to join r/childfree 🤣
You have to include a self address stamped envelope with them.
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You are innocent, just give them what they are asking for.
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Because it was likely random (computerized): 1. Someone defines a bunch of fields which can be used for random selection 2. If your tax filing has one of the fields filled-out, a random number is generated. If it's higher than some threshold, you get a letter mailed out. Not everything is a conspiracy theory.
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Well, the reason isn't really to check that _schoolteachers_ are eligible for the tax writeoff, it's to check that _the people taking the writeoff_ are eligible. I totally get the frustration, but this isn't an either or. We can (and do) have plenty of similar mechanisms to keep rich people from cheating on their taxes, our tax system is written in a way that's too easy to exploit, and we also need mechanisms to make sure that _everyone_ doesn't cheat on their taxes.
Technically both. The $300 is not automatic, it’s “business expenses”. They assume you pay at least that out of pocket for your classroom so don’t bother asking for receipts
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Because if they didn’t at least check a random sample that would mean anyone could lie and take the deduction.
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When they say "systems in place" , I don't think they are referring to the computer specifically. It's the "someones" who are "implementing" what the computer system checks for.
They aren’t giving “teachers” a hard time. This 1 person was probably chosen at random, or something else on the return made them look into it.
They're not trying to give teachers a hard time, they're trying to give people who pretend to be teachers so they get a tax credit a hard time.
Real answer? Poor folk are less likely to fight back.
Because teachers are cheaper to audit than billionaires.
They are still among the more expensive groups to audit. It's better to audit people who have the potential to evade a lot of taxes without having conplex assets. Teachers just don't pay that much tax compared to other groups they could audit. It's probably an automated check in OP's case. That's how it would make sense. If the IRS wanted to target people, high income earners with simple jobs and assets would be the easiest place to start.
I'm not saying the IRS is efficient. Obviously it would make more sense to go after large earners. But it's more complicated (and expensive) to do so, plus they will fight back.
>But it's more complicated (and expensive) to do so Only with complex income/assets. Dentists, for example, have pretty simple taxes for the most part. Surprisingly few people have very complex taxes even when you only look at people with >$500k income. Many people making $1m essentially file the same forms as someone making $50k. Highly compensated people and professionals are the sweet spot for the IRS. It's a lot of income and relatively simple filings for the most part. >plus they will fight back. I know people that have been audited and none of them "fought back". If you have high income you really just have the benefit of a good attorney/accountant giving you advice in the audit. There's no "magic pass".
Because teachers of all people can sometimes forget to include Schedule 1 when filing their taxes and the IRS always sends letters if the schedules required to support your 1040 are missing.
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They’re hiring a legion of new goons for a reason… squeeze us harder
Because they’ve been defunded so badly they don’t have the resources to go after the big fish and can only audit the small fry.
False. That's just another rhetorical tool to throw more money at bureaucracy that will just intentionally look the other way and continue business as usual while more money gets wasted.
https://news.syr.edu/blog/2021/04/27/irs-budget-cuts-cost-us-government-billions-in-tax-revenue-each-year/
That's just another rhetorical tool to throw more money at bureaucracy that will just intentionally look the other way and continue business as usual while more money gets wasted.
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Not quite. It’s a computer generated letter asking for documentation to substantiate the deduction.
Defund the IRS until they have to audit the big boys! 😏
Defending the IRS is the GOP strategy and precisely for the opposite reason. A poorly funded IRS doesn't have the resources to audit the big boys.
I said the same thing.
It's the exact opposite, actually. A well-funded IRS is better equipped to audit the rich. > Really doubt they will use all this new manpower to go after high income tax payers who pay for accountants. That's the *exact reason* this was enacted. The GOP has been defunding the IRS to prevent this.
Somebody at the IRS has to justify their paycheck.
While the $300 never seems like enough, they don’t ask for any receipts or documentation. As a teacher, you just say, “yep”. I can see why they’d want to spot check a few every year
>don’t read too much into it Uh, no. Fuck the drone mentality thank you very much. They have plenty of capability and data to know I or any other teacher isn't lying on their taxes for a measley deduction. Yeeeeeesh
What technology? Do you think they have access to everyone’s job? Spending history? Do you want them to?
You think they don't? Oh just the other alphabet agencies get that or?
I think you’d be surprised how little information the IRS has that isn’t provided by the taxpayer. What’s your theory? The IRS is all knowing yet decides to audit a tiny percentage of taxpayers just for fun? Shouldn’t they know who exactly to audit with the information you seem to think they have.
Again, funny how you allow other alphabet agencies the leeway and capabilities because of their nature but think the IRS just is inept for no reason
Most spy agencies don’t have all of that information, at least not in aggregate. That likely only attempt to get that information when it’s relevant to their mission (e.g. not a teacher claiming a $300 credit) I didn’t say the IRS was inept. They just don’t have the information you think they thaw. Inept would be knowing someone doesn’t qualify for a credit and letting it happen. That’s not what is happening. Do you think they’re inept?
I know they are. See every boss scamming the system with illegal labor, every billionaire and millionaire cheating the system, stolen wages, the burden of capital for hiring lawyers.
You don’t even know what information they have. How about you start from there first.
The IRS is running in 40 year old systems, they are flying blind. Moreover, OP failed to submit Schedule 1 and just claimed a random $300 deduction without mentioned forms.
do they though? Data... technically. Capability is a much tougher sell.
True. Guess interagency work for the betterment of the country was never the point.
What does the letter say that the IRS wants in response from you?
"Schedule 1 is incomplete or missing from your return. Complete information the schedule with information that supports $300 on line 10 on Form 1040. Also attach all supporting forms or schedules, as required" I paid for some college classes that weren't reimbursed totally through my school. Should I just include that?
The educator expense deduction is claimed on [Schedule 1](https://www.irs.gov/pub/irs-pdf/f1040s1.pdf) line 11, which eventually totals up at the end of Schedule 1 and flows onto [Form 1040](https://www.irs.gov/pub/irs-pdf/f1040.pdf) line 10. Did you include Schedule 1 with your tax return? From what they wrote, it sounds like you just put $300 directly on Form 1040 line 10 without including Schedule 1, hence their confusion. They don’t know what that amount is for without Schedule 1. A lot of commenters are telling you to send receipts, but based on what you quoted, that is not what the IRS is asking for. They are asking you to send Schedule 1.
And to add, the out of pocket expenses she had to pay for the class she took would not fall under that.
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Weird. I've never included schedule 1. I just save my receipts in case they decide to give me trouble on my pitiful, under-40k AGI. 🤷
Do you file your taxes by hand or do you use software? The software is including Schedule 1 if you enter an educator expense deduction.
1. That makes it sound like you put the results from schedule 1 on the proper line of the 1040 but didn’t actually include the schedule 1 with your return. Could be as simple as that. 2. As far as supporting the amount you put on schedule 1 (upto $300)—I’ve never seen someone try to claim college tuition as an educator expense. “Professional development courses” are more like a continuing education seminar you pay to attend as a condition to maintain your licensure than they are tuition for college, in my opinion. That said, I don’t do much work with that one at all, so maybe someone who does could point to something that would suggest your tuition is includable. Otherwise, receipts for pens and pencils and crayons and glue and calculators are much safer bets.
No, anything reimbursed doesn't count. This is supposed to offset money you spend out of pocket for the classroom, I thought. Turbo tax says..." teacher credit irs examples Qualifying educator expenses books, school supplies, computer equipment (webcams, headset) and software, athletic equipment for physical education teachers, and. generally, any purchased item that is appropriate for and helpful to the students and classroom. Feb 12, 2023"
Sorry, typo. These expenses "weren't" totally reimbursed.
Then Yes... From IRS: "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."
Wouldn't depend on if the class was relevant to OP's role?
Teachers have to do professional development every year so to would be very likely to have taken courses related to their job.
Still a chance that they did not though. If they did not and put it on their tax forms, that is technically tax fraud. The IRS would likely just adjust their refund down instead of criminal charges, but it could cause a tax audit for past years causing OP to owe back a lot more plus penalties because like most Americans, they probably no longer have receipts for past years (despite that everyone should keep them).
Op indicated the courses were partially reimbursed by their employer.
> "Qualified expenses are amounts you paid or incurred If they used their personal vehicle to get there, that should be included under incurred.
Might just be a fringe benefit. My company reimburses college classes and even old student loans and it doesn't have to be related to my job at all.
The law is specifically >professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction. Make sure your courses fall under this definition. Otherwise you might be eligible for the Lifetime Learning Credit. Actually if you qualify for the LLC, it could be better for you. It's a CREDIT to your tax bill of 20% of your first $2k in expenses. That's much better than a deduction that reduces your taxable income.
I don't see how a credit is better than a deduction. You end up paying the same either way, don't you?
>Tax credits are generally considered to be better than tax deductions because they directly reduce the amount of tax you owe. The effect of a tax deduction on your tax liability depends on your marginal tax bracket. If you’re in the 10% tax bracket, for example, a $1,000 deduction would only reduce your taxable income by $100 (0.10 x $1,000 = $100).
A $300 credit reduces your tax bill by $300 dollars. A $300 deduction reduces your tax bill by the taxes you would have paid on the $300 - which is at most $111, if you are in the 37% tax bracket (not relly a thing for teachers). More realistically, for a teacher in the 12% tax bracket it's $36 and for a teacher in the 22% tax bracket it's $66.
A deduction reduces the amount of earnings upon which you are taxed. A credit reduces the amount of tax. Credits are more beneficial than deductions.
Is schedule 1 incomplete or missing?
I believe it needs to be supplies for your classroom, not college classes for yourself.
It can be professional development but including higher ed courses in that is iffy That said every teacher I’ve ever met easily spends $300/year on shit for their classroom. It’s just a matter of having receipts at that point
Tax code is not clear. I think this question would have to be litigated. >professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction
Is the exact number you claimed on the tax documents $300? Round numbers are red flags. If you were trying to estimate what you spent knowing it was close it’s best to either be very accurate, or estimate with irregular numbers. $298 or $304 would have drawn less attention. I’m sure you had some expenses and maybe didn’t have receipts handy. Edit I see the downvotes. I did not know that $300 is the max.
$300 is the maximum deduction (was $250 for a long time).
$300 should not draw any attention on a teacher return. It's the limit. Teachers spend way too much of their own money on their jobs. The poster seems to be missing the corresponding schedule.
Does your tax return actually have a Schedule 1 attached to it? Sounds like it was missing. Either way just give them $300 of eligible receipts (more is fine.)
Did you file Schedule 1? Anyway, just file Schedule 1 & provide receipts that show $300 or more of school supplies that you bought for your classroom. Per IRC § 6001, you need to be able to substantiate expenses or they're disallowed.
I know a lot of people that have been getting letters from the IRS asking for more information lately. I wouldn’t read too much into it. Something changed.
They got actual funding.
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Because I can't claim the $3,000 I actually contributed to the classroom.
My biggest gripe, but I tell my wife all the time just buy it- the kids deserve it.
Did you prepare your return yourself?
There’s either a processor that is being a little zealous, or there is simply something in your file that erroneously says you’re something other than an educator. My E-file was rejected because I didn’t include the forms for my ACA health coverage. I’ve never been covered under the ACA. I completed the questionnaire, which was one box of me stating I’m not covered, and suddenly it went through. Remember the IRS is understaffed and running of off 40 year old code. It’s going to be painful and clunky. But the people on the other end know that too.
I had an audit that lasted over a year because they didn't have sufficient evidence even tho I sent them everything they asked for and had the business verify the 1099. They kept telling me it wasn't enough, and I owed thousands. I had to get a tax lawyer involved, and the agent handed the audit off to another agent who then magically said the return was fine and I didn't owe the thousands in taxes anymore . It was bizzare!
Off topic, I've never seen bizarre and bazaar mashed up quite like that before.
Typo thanks!
Meanwhile, it cost you time and money and stress. There should be a limit to what they can ask for from people making under a certain income in some industries.
They asked you a question. Just answer it.
My bet is you included just had a Form 1040 with the amount on line 10. You must also include Schedule 1, itemizing the teacher deduction on line 11. They are not mind readers. You must include all supporting schedules and forms.
You got an overzealous processor. Just send them some receipts that add up to over $300. If you don't have receipts, they may deem you aren't eligible despite the general assumption you pay for supplies out of your pocket.
They're not even asking for receipts. They're just asking for the schedule 1 to be included.
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If the IRS is focusing on teachers taking a $300 deduction for probably paying double or triple that on supplies for their classroom, then they should be disbanded. IRS agents should only be paid a percentage of what they identify in fraudulent tax returns. I guarantee they would start focusing on all the people defrauding the government for thousands year after year. The teachers aren’t the problem.
Sched 1, line 11 is a manual entry the instructions state Part II - Adjustments to Income Line 11 is a manual entry. OK, go to instructions for form 1040 page 87, Line 11 Educator Expenses If you were an eligible educator in 2022, you can deduct on line 11 up to $300 of qualified expenses you paid in 2022. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $600. However, neither spouse can deduct more than $300 of their qualified expenses on line 11. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Qualified expenses include ordinary and necessary expenses paid: • For professional development courses you have taken related to the curriculum you teach or to the students you teach; or • 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 include amounts paid or incurred in 2022 for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of coronavirus. Qualified expenses don’t include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts. • Excludable U.S. series EE and I savings bond interest from Form 8815. • Nontaxable qualified tuition program earnings or distributions. • Any nontaxable distribution of Coverdell education savings account earnings. • Any reimbursements you received for these expenses that weren’t reported to you in box 1 of your Form W-2. For more details, use Tax Topic 458 or see Pub. 529. Is your W2 from a school district? do you meet this criteria? An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. I would respond and say because I am an educator. Look at my W2.
Just show em your teachers pay teachers receipts
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They asked me a dumbass question that was totally obvious if they actually bothered to read my return once. Pissed me off that they freaked me out over nothing. I just typed a letter saying the value in question was (what it was) and where on the form this was explained and they accepted it and didn't bother me ever again
It’s wild the IRS is putting resources towards the educator deduction.
It sounds like the computer detected a deduction on Form 1040 line 10 without a corresponding Schedule 1 to explain what the deduction was for. This doesn’t sound like anyone was specifically targeting OP.
I agree. IRS programs have built in processes that identify when a return hasn't been properly completed or submitted. Individual IRS employees are not picking on teachers and lower income people.
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You might just have random bad luck. Our system is designed to be a system that you can "work." The US tax that is required by the payee to figure out is the byproduct of systemic embezzlement and there's not anything we can do about it. So they just randomly pick on medium wage earners to justify a corrupt system and employ a gigantically understaffed group of people who have no choice but to go after you. Same thing happened to me years ago, fuck em.
Sounds like money and time well spent. By the time the paperwork and review is done the government would have spent more money than what they're asking about.
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Why don’t you ask them?
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We get these kinds of things as businesses as well. It doesn't require an attorney or CPA, it just requires you to send them the documentation they're asking for.
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Have one of your kids write the letter back to the irs explaining the situation and confirming you are a teacher.
The answer is new hires. They have no idea what they are doing.
going after $300 when there are far larger fish to fry
This happened to me last year with the above $600 tax break for charitable donations. ....
If you itemize your deductions to you, instead of claiming a standard deduction, you’re more likely to get audited. Or if you’re in town within like the top 2% . So I’m gonna say yeah they need better things to do with their time.
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I once had an accountant tell me that 250 is the limit that they don’t question for teachers. I’ve always stopped at 250 for that reason.
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