CAT Tracks for September 29, 2004 $250 TAX DEDUCTION EXTENDED

Received the following press release from the NEA...

Victory -- Tax Breaks for Classroom Expenses Extended!

The $250 tax deduction for out-of-pocket classroom expenses incurred by teachers and paraprofessionals will be extended for the 2004 and 2005 tax years under House- and Senate-passed legislation (H.R. 1308) extending marriage penalty relief and the child tax credit.

In 2002, Congress passed legislation giving teachers and paraprofessionals a $250 federal tax deduction for teacher and paraprofessional out-of-pocket expenses for instructional materials and classroom supplies. The legislation represented an acknowledgment - for the first time - that teachers and paraprofessionals are spending their own money to equip their classrooms. This modest tax break expired at the end of 2003.

NEA and some lawmakers worked throughout the year to reinstate the deduction and will continue to work to make the deduction permanent and to expand eligible expenses to include professional development.

The tax bill also includes two other NEA victories - the extension of the Qualified Zone Academy Bond Program providing $400 million each year in 2004 and 2005 for school construction; and extension of a tax deduction for corporations that donate computers to public schools. The President is expected to sign the bill into law shortly.