Common tax deductions that an educator can have

Common deductions are publications, continuing ed, conferences, travel. As to the "IRS radar," you should take any unreimbursed, out-of-pocket expenses that are a result of your job and recognized as legitimate by the IRS (suits, ties, and dry cleaning them don't count). The IRS has been known to target certain miscellaneous deductions and occupations, but your obligation is simply to be able to show proof of the expenses and that they are directly connected to your W-2 income--if you can't prove it, don't take it. Also keep in mind that in order to benefit from miscellaneous deductions, they must exceed 2% of your adjusted gross income.

Apparently, there have recently been a significant number of correspondence audits in regard to travel expenses. What would matter during an IRS audit of an educator would be the level at which they teach. A 1st grade teacher would have difficulty justifying a research trip to Paris that might be considered legitimate for an art history professor. Anyone who wants to deduct travel expenses should refer to Publication 463 first. Common mistakes include taking commuting expenses and claiming meals when no overnight travel or business connection is involved.

The answer is almost always "It depends." In the case of educators, among of things, it depends on at what level you are an educator. University professors are in the catbird seat when it comes to deductions since research is whatever you want to call it and still keep a straight face.

Once you are employed as full-time faculty at any accredited institution, your further education is deductible as in an MBA, Masters, Ph.D., but NOT Law or Medical Schools - usually. Out-of-pocket expenses are a problem because you need to meet a 2.5%(?) threshold of AGI before it is deductible dollar for dollar. You are better off if the school sets aside a portion of your salary in an accoutable plan to reimburse you.

It's a shame that I am retired - otherwise my two weeks in OZ last year would have been deductible - somehow. I knew a Professor who went to England for two months one summer, interviewed for a faculty position at two Universities, and worked on research. He took his wife and children with him and stayed at the home of her parents. He was audited for his home office deduction (right after the Soliman home office decision came out). They tried to disallow his expenses on the trip to England as a family vacation. His postion prevailed at an administrative hearing.

Plan ahead, have less deducted, and pay a few dollars to optimize your cash flow.

Dick