Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that weren’t reimbursed by their employer, a grant or other source.
Who is an eligible educator:
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.
Things to know about this deduction:
Starting on tax returns for 2022, educators can deduct up to $300 of trade or business expenses that weren’t reimbursed. If two married educators are filing a joint return, the limit rises to $600. These taxpayers cannot deduct more than $300 each.
For 2021 returns, the limit is $250, or $500 for married educators filing jointly. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction.
Qualified expenses are amounts the taxpayer paid themselves during the tax year.
Here are some of the expenses an educator can deduct:
Virginia issued guidelines regarding previously enacted legislation that changes the application of the retail sales and use and transient occupancy taxes to sales of accommodations involving accommodations intermediaries. The changes are effective October 1, 2022. Specifically, the legislation does the following:
Collection Of Tax Beginning October 1, 2022
For any retail sale of accommodations facilitated by an accommodations intermediary, regardless of whether the accommodations are at a hotel, short-term rental, or other type of lodging, the accommodations intermediary is deemed a dealer making a retail sale of accommodations and must collect the tax computed on the room charge and remit the same to the Department.
For any transaction involving two or more parties that meet the definition of “accommodations intermediary,” the parties may make an agreement regarding which party is responsible for collecting and remitting the tax, so long as the responsible party is a dealer registered with the Department. Additional charges levied in connection with the rental of accommodations that are not part of the “room charge” and the tax collectible on such charges are collectible from the customer by the accommodations provider. In such instances, the accommodations provider must remit the tax collected on the additional charges to the Department.
Accommodations providers are required to collect and remit all taxes on transactions not facilitated by intermediaries.
Similar rules apply to the transient occupancy taxes, which are remitted to the locality. In addition, intermediaries are required to submit to a locality each month the property addresses and gross receipts for all accommodations facilitated by the intermediary in such locality.
In any retail sale of accommodations facilitated by an accommodations intermediary, the accommodations intermediary must separately state the amount of the tax on the bill, invoice, or similar documentation and must add the tax to the room charge. Thereafter, the tax is a debt from the customer to the accommodations intermediary, recoverable at law in the same manner as other debts. Where the retail sale of accommodations is not facilitated by an accommodations intermediary, the accommodations provider must separately state the amount of the tax in the bill, invoice, or similar documentation and must add the tax to the total price paid for the use or possession of the accommodations.
Accommodations intermediaries may have an obligation to register and collect the retail sales and use tax as marketplace facilitators. Marketplace facilitators are generally permitted to apply for waivers of their duty to collect and remit tax based on a showing either of undue hardship or that all of their marketplace sellers are already registered dealers. In the past, these waivers may have permitted accommodations intermediaries to allow accommodations providers to collect and remit all taxes due on retail sales of accommodations. However, under the new legislation, accommodations intermediaries, where they are deemed dealers for purposes of a retail sale of accommodations, may not assign or otherwise transfer their duty to collect and remit taxes as required by law to accommodations providers or any other entity.
The District of Columbia has passed the 2023 Budget Act and it includes amendments to multiple property tax provisions.
Increase Limit Amended for Seniors and Disabled Individuals
Residential property receiving the homestead deduction and senior or disabled owner real property tax relief are protected by a cap credit on their property tax bills. Currently, the real property tax cannot be increased annually more than 5% in the property’s taxable assessed value. Beginning October 1, 2022, the residential real property increase for these properties is limited to 2% annually.
Disabled Veterans Deduction Amended
The homestead deduction for disabled veterans is increased to $445,000 (currently, $250,000). Real property receiving the deduction will no longer be eligible for the:
Additionally, the disabled veterans homestead is exempt from the requirement that a residential property’s taxable assessments cannot be less than 40% of the current year’s assessed value.
Tax Abatement for Downtown Housing
The tax abatement for downtown housing has been amended to:
Act 24-492 (D.C.B. 24-714), Laws 2022, approved July 25, 2022, applicable October 1, 2022, and effective after a 30-day congressional review period
The District of Columbia has enacted a buget for 2023 that makes permanent changes to income tax provisions regarding:
The budget is making permanent the changes enacted earlier this year in emergency legislation.
Act 24-0492 (D.C.B. 24-0714), Laws 2022, approved July 25, 2022, effective after a 30-day congressional review period
The IRS has extended the deadlines for amending a retirement plan or individual retirement arrangement (IRA) to reflect certain provisions of Division O of the Further Consolidated Appropriations Act, 2020, P. L. 116-94, known as the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and section 104 of Division M of the Further Consolidated Appropriations Act, 2020, known as the Bipartisan American Miners Act of 2019 (Miners Act). In addition, the Service has extended the deadline for amending a retirement plan to reflect the provisions of section 2203 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), P. L. 116-136.The extended amendment deadline for (1) a qualified retirement plan or Code Sec. 403(b) plan (including an applicable collectively bargained plan) that is not a governmental plan or (2) an IRA is December 31, 2025.
Extension of Plan Amendment Deadline
SECURE Act and Miners Act
The deadlines for amending a retirement plan or IRA to reflect the provisions of the SECURE Act or the Miners Act, as set forth in Notice 2020-68 and Notice 2020-86, are extended as follows:
The deadlines for amending a retirement plan to reflect the provisions of section 2203 of the CARES Act are extended as follows:
Notice 2020-68, 2020-38 I.R.B. 567, and Notice 2020-86, 2020-53 I.R.B. 1786 are modified.
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