Income Tax Help
From purchasing classroom supplies to paying for grad school tuition, a career in teaching can leave a person feeling a bit light in the wallet. Fortunately, there are a number of tax breaks available to educators. If youre a teacher looking for income tax help, heres what you need to know:
Even the most experienced small business person needs a little help when it’s tax time. If you are self employed or own your own small business you must pay 15 percent tax on your net profit. Which means… After you have subtracted your total business expenses from your total business income you must pay 15 tax on the leftover amount.
Expenses incurred when lecturing, writing or publishing for which you receive no additional compensation other than your regular salary. Note: These expenses may be for research, incidental travel and publication costs. They must be ordinary and necessary expenses for activities related to, and expected for, your position.
If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. In addition, you may need to make estimated payments to cover the amount of self-employment tax or income tax associated with the income you report on Schedule C.
You may be able to reduce your taxes by deducting expenses for tuition incurred in pursuing graduate school or other additional education. If the education is part of your state school board’s certification renewal process, it may be deductible. However, if the education is needed to meet the minimum educational requirements to qualify you for a particular position, or if the education will qualify you for a new trade or business, it is not deductible. Changing from an elementary school teacher to a secondary school teacher or changing the subject you teach, from biology to art, for example, is not a change to a new business. Classroom teachers that become guidance counselors or school administrators are also not considered to have changed their trade or business.
Thank You to the powers that be. Tax preparation is costly, and for a company to lighten my load, especially during a time of need, I am forever grateful. I believe there is little gratitude right now because of the poor economic situation that the USA is in. Our prosperity has come to a halt. Happy filing to everyone.