Our pastor's wife is a kindergarten teacher and would like to take advantage of the above-the-line deduction for teachers' out-of-pocket classroom-related expenses. This law expired on December 31, 2009. Was it extended?
Yes. The 2010 Tax Relief Act extends these provisions to expenses incurred in 2010 by an "eligible educator." An eligible educator is a kindergarten through 12th grade teacher, instructor, counselor, principal or aide in any elementary or secondary school. The above-the-line deduction is limited to $250 for out-of-pocket expenses paid in connection with books, supplies, computer equipment, other equipment, and supplementary materials used in the classroom.
Dan Busby is a certified public accountant, president of the Evangelical Council for Financial Accountability (ECFA), and the author of the Zondervan Clergy Tax & Financial Guide.