DEDUCTION FOR TEACHER SUPPLIES

The Federal return provides for a deduction for the 2002 and 2003 tax years of up to $250 for teachers for their out of pocket expenses in providing classroom supplies.

Although the 2002 Legislature did not couple with the provision of the Federal Tax Code, we anticipate the Legislature will allow this deduction retroactively to this year’s tax return.

Eligible taxpayers may take the deduction as an “other adjustment” on line 24 of the IA1040. Should authorizing legislation not pass, an amended return will need to be filed subtracting the adjustment.