Filing tips for students, educators and divorcees
How do I qualify for the Educator expenses?
You must be a full-time (900 hours during a school year) kindergarten through 12th grade teacher, counselor, principal, or aide.
You can deduct up to $250 for out of pocket expenses that you paid for supplies, books, equipment, and materials used in your classroom.
Qualified expenses do not include expenses for home schooling or non-athletic supplies for courses in health or physical education.
Do not include expenses that were reimbursed.
Who can deduct student loan interest?The deduction follows the dependent.
If your parents do not claim you as a dependent, then your student loan interest (Interest from loans that you took out to pay for the qualified education expenses for yourself, your spouse, or your dependents) is fully deductible to you if your adjusted gross income is below $60,000 (single) or $120,000 (married).
If your adjusted gross income is between $60,000 and $75,000 (single) or $120,000 and $150,000 (married), you will get a partial deduction for student loan interest. The maximum amount of deductible interest is $2,500 for 2011.
However if your parents claim you as a dependent the deduction goes to their tax return.
Are my alimony payments deductible?
Alimony payments are deductible if the following requirements are met:
• The payments are in cash (check, money order, etc.)
• Required by a divorce or separation instrument.
• The payments are not for child support.
• The payments are not part of the property settlement payments related to the divorce.
• You and your (ex)spouse must not be members of the same household and do not file a joint tax return.
• You are not liable to make any payments for any period after the death of your ex-spouse.
One item to note is that if you owe both alimony and child support, and you pay less than the amounts required during the year, then the amounts paid are first applied to your child support obligation before being applied to alimony.
Questions for Deborah Ritz can be e-mailed to The Weekly Adirondack at WeeklyADK@yahoo.com
