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Its tax time again — and as an education professional you have some special tax saving benefits available to you. While taxes can be a dry topic, it literally pays to know the ins and outs of allowable deductions and credits, as they can have a big impact on the amount you will owe come April 15th.

Our first lesson is that not all tax savings are created equal. Deductions reduce your taxable income, or the amount used to calculate your taxes from the IRS schedules or tables. Credits, however, are much more powerful. They are a dollar for dollar reduction in actual amount of taxes owed.

Qualified K-12 educators can take advantage of the Educators Expense deduction. The maximum deduction is $250; $500 if you file jointly and your spouse is also a qualified educator. (Having retired teachers for parents, I know the actual annual out of pocket amount for these types of expenses can be much, much larger, but every little bit helps.) According to the IRS, “…expenses that qualify include books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Expenses that do not qualify are home schooling, nonathletic supplies for physical education, or health courses.” The IRS does provide specific examples of qualified and nonqualified expenses in their online lesson plan on the subject.

In addition, education deductions and credits for the continuing education or professional development of you or your family may also be available. These include the Student Loan Interest Deduction, the Tuition and Fees Deduction, the Hope Tax Credit, the American Opportunity Credit, and the Lifetime Learning Credit. Because some of these credits are mutually exclusive and each has their own requirements, check out IRS Publication 970: Tax Benefits for Education to see if the education expenses you have incurred for you or your family qualify.

Lastly, don’t forget to check out the H & R Block special savings available to NEA members through NEA MB on both do-it-yourself software and professional tax preparation services.