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#3
09-13-2003, 09:31 AM
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 Re: Teachers Should Save Receipts for Educators' Deduction - quote - > California doesn't allow the $250 as an adjustment, so if
Actually, it should in most cases.> you take it on page 1, you have to subtract that from CA's > page 1 and add it back to CA's itemized deductions. > Darned if I know why sometimes it makes absolutely no > difference when the teacher has misc deductions that beat > the 2%. > I do it one way - the tax is...4,100. I do it the other > way....the tax is 4,100. (Make up figures of course). > Shouldn't happen, but it did, over and over, this last > season. Start with the "old" method (everything on Sch A). If you move $250 from Sch A to pg. 1, you lower your AGI by $250. At the same time you lower your miscellaneous itemized deductions by $245 [(total misc deductions -$250) - 2% * (AGI - 250)]. Assuming no other AGI related adjustments on the return, taxable income is lowered by $5. Unless that $5 spans a step in the tax table, there won't be any difference in tax. Ira Smilovitz << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
09-11-2003, 11:18 PM
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| Re: Teachers Should Save Receipts for Educators' Deduction California doesn't allow the $250 as an adjustment, so if you take it on page 1, you have to subtract that from CA's page 1 and add it back to CA's itemized deductions. Darned if I know why sometimes it makes absolutely no difference when the teacher has misc deductions that beat the 2%. I do it one way - the tax is...4,100. I do it the other way....the tax is 4,100. (Make up figures of course). Shouldn't happen, but it did, over and over, this last season. Nan, EA in LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
09-08-2003, 02:50 AM
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| Re: Teachers Should Save Receipts for Educators' Deduction Nan Eklund <naneklund[at]aol.com> wrote: - quote - > It probably costs me nearly as much. About 60% of our
Helen, can you give an exemple of where it is more> clients are teachers so we have to check with all of them > (except for the FEW who don't itemize) on whether the > tuition and classroom expenses do more good on page one or > on Schedule A, subject to the over 2% .limit. > NOTE - 90% of the time it makes no difference whatsoever - > and when it does, we also have to make sure the California > adjustment is correct. advantageous to use the $250 as a schedule A deduction instead of as an adjustment to income? In Ohio it's pretty much always better to use as an income adjustment since Ohio income tax begins with federal AGI. Any AGI-based phase-out can only be helped by using this as an income adjustment. The only reason I might see is if there is an additional tax prep fee to claim the adjustment in addition to the Scheddule A deduction. __ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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09-05-2003, 01:20 AM
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| Re: Teachers Should Save Receipts for Educators' Deduction "Paul A. Thomas" <taxman[at]negia.net> wrote: - quote - > "John H. Fisher" <taxservice[at]aol.compliance> wrote
Yeah, gotta preserve that whopping $63 tax savings......> > IR-2003-106, Sept. 2, 2003 > > Teachers Should Save Receipts for Educatorsâ?T Deduction > > > This is scheduled to be the last year for this deduction. > Remember that next year ~2004~ is an election year, and the > Repubs will claim that the Dems are "increasing your taxes". > I doubt (for political reasons) that this will be allowed to > expire. In fact, it would be nice to see it increased. -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
09-04-2003, 09:13 AM
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| Re: Teachers Should Save Receipts for Educators' Deduction "John H. Fisher" <taxservice[at]aol.compliance> wrote - quote - > IR-2003-106, Sept. 2, 2003
Remember that next year ~2004~ is an election year, and the> Teachers Should Save Receipts for Educatorsâ?T Deduction > This is scheduled to be the last year for this deduction. Repubs will claim that the Dems are "increasing your taxes". I doubt (for political reasons) that this will be allowed to expire. In fact, it would be nice to see it increased. -- Paul A. Thomas, CPA taxman[at]negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| deduction, educators, receipts, save, teachers |
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