Tax Credits and Deductions for Teachers ($250), Unemployed, Home Owners ($500/$1000) and College Tuition in 2010 Jobs and Closing Tax Loopholes Act


The recently introduced American Jobs and Closing Tax Loopholes Act (Bill: HR 4213) includes important tax cuts to put more money back into the pockets of American families and workers. This new bill extends critical tax cuts through the end of 2010 so families and workers can receive the full benefits of these tax cuts on their 2010 tax returns and, therefore, have more money to spend on the items they need like gas and groceries. The proposals are estimated to provide American families with an additional $5 billion of tax cuts in 2010. Specific tax breaks and credits include:

Tax Cut for College Tuition – This bill extends a tax deduction for qualified education expenses including college tuition and fees, so Americans can get the world-class education they deserve without going bankrupt in the process.

Property Tax Deduction – This bill extends the additional standard deduction for state and local property taxes to save families money on their federal tax returns. This deduction allows taxpayers who do not itemize their tax deductions to receive property tax relief as a standard deduction of $500 for single filers and $1,000 for joint filers.

Tax Cut for School Teachers – This bill extends a $250 tax deduction for teachers who buy classroom supplies out of their own pockets, so teachers can continue to provide a quality education. It covers expenses paid or incurred for books, supplies (other than non-athletic supplies for courses of instruction in health or physical education), computer equipment (including related software and service), other equipment, and supplementary materials used by the educator in the classroom.

Sales Tax Deduction – This bill extends the option for taxpayers to deduct state and local sales tax on their federal tax returns, so families can continue to save money with the tax deductions they count on.

Tax Cut for Energy-Efficient Home
– This bill updates the eligibility for tax credits for energy-efficient windows, so even more families across the country can take advantage of this tax cut.

Unemployment Insurance – This bill extends eligibility for unemployment insurance through the end of this year, so families and communities can continue to receive the benefits they depend on as Congress works to create jobs. Without this extension, eligibility for federal benefits will expire at the end of May and workers who have lost their jobs through no fault of their own will lose the benefits they depend on to pay the rent and put food on the table while they look for work. This bill continues full federal funding of extended unemployment insurance benefits to ensure states can continue to provide unemployed workers with 13 to 20 additional weeks of benefits. It also extends the Additional Compensation Program to continue providing unemployed workers with an additional $25 per week to make ends meet in this tough economy.

COBRA Health Care Tax Credit – This bill extends eligibility for the 65 percent COBRA tax credit to help workers who have been laid off maintain their health insurance while they look for work.

The above tax breaks are part of bill H.R. 4213, which was recently approved by the house and will soon be voted on by the Senate and then signed into law by the President. I will continue to monitor this  bill as it progresses through Congress and encourage you to subscribe (free) via Email or RSS to get the latest news along with all the other stimulus payments in 2010 and 2011.  You can read the full bill and get more details here.

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5 Comments on "Tax Credits and Deductions for Teachers ($250), Unemployed, Home Owners ($500/$1000) and College Tuition in 2010 Jobs and Closing Tax Loopholes Act"

[…] forclassroom supplies that they buy out of their own pockets, whether they itemize or not. This tax break is scheduled to expire at the end of 2011, but is highly likely to be extended through 2012. […]

[…] Senate Majority Leader Harry Reid proposed a three-month deadline extension as part of the  HR4123 tax breaks amid concern that a rush of buyers created too big of a backlog. New-home contracts […]

Tuesday 10:41 am
To all of you that think that you lead tough lives and think that those who are on the top are reaping more benefits than you are clearly out of your mind. I am a single parent (mother) in the Military and NONE of you will EVER know a “HARDSHIP” like those in the Military feel everyday when we rarely get to see our families and work all the time and are STILL barely able to put food on the table and gas in our by no means luxury vehicles. We fight for your freedom, we fight for your right to speak, we fight for all the benefits that you DO have and I apologize if this is the first time that you have been placed in a situation where you are actually being told the cold hard truth, but suck it up through a straw. Honestly, what makes anyone… Read more »
Thursday 4:57 pm

One thing you did not say in your post is that one of the “rider” revenue raisers is an additional tax on small S-corporation owners providing services. This bill will cause ALL profits of an S-corporation owned by 3 or fewer individuals engaged in providing services to be taxed. Now, if the bill said ALL S-corporations including BIG BUSINESS, I might be able to get my arms around the provision, but no, our representatives have decided that those companies creating the majority of jobs in America should be taxed (hopefully the Senate will see through this ruse, and vote it down on Monday).

While I’m all for the benefits you’ve identified in your post, this particular revenue raiser wll do nothing but retard small business job opportunities, which is pretty much the antithesis of the purpose of the bill.

Thursday 9:46 am
If you are an eligible educator, you can deduct up to $250 ($500 if married filing joint and both spouses are educators, but not more than $250 each) of any unreimbursed expenses [otherwise deductible as a trade or business expense] you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. For courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics. This deduction is for expenses paid or incurred during the tax year. The deduction is claimed on either line 23 of Form 1040 (PDF) or line 16 of Form 1040A (PDF). You are an eligible educator if, for the tax year, you meet the following requirements: You are a kindergarten through grade 12: Teacher Instructor Counselor Principal, or Aide, and You work at least 900… Read more »

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