Educator Expenses Not Allowed?

[karl404]

In 2020 I was an educator with more than $250 in education expenses. I entered $250 in the "How much did you spend in educator expenses?" on the interview in turbotax premier. When I click "done" I get "It turns out you don't qualify for this deduction" However, when I click on the "Why don't I qualify for this deduction?" link, a blank window appears. Any suggestions or ideas? 

When I go to the forms view, it looks like the form is subtracting off an amount from the qualified withdrawl I made from my daughter's 529 plan. I don't see in the tax code where either of these things should be related.

[ColeenD3]

The Educator Expense is still valid for 2020. I just entered $250 and got the credit on my practice return. Delete the entry, clear your cache and cookies and re-enter $250.

How much did you spend in educator expenses?

Enter all of your qualified educator expenses here.

• Books
• Supplies
• Computer equipment
• Supplementary materials
• PPE, disinfectant, and other supplies to prevent the spread of COVID

Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet in the list and follow the instructions

[karl404]

Yup, I know that the credit is still valid. I spent more than the $250 allowed. I am using the desktop version so cache clearing does not apply. I did uninstall and reinstall the program FWIW. I think there is an error in the TT software. Still have the problem.

[AmyC]

I am in the desktop program and the Educator Expenses Worksheet pulls up and flows to sch 1 line 10 as it should.

Since you are in the desktop version, go to your educator expenses entry. Then click on FORMS mode and it will take you to the Educator Expenses Worksheet. Do you have other things happening in your return that prevent you qualifying, like the excludable interest?

Is the form nonexistent? You can go to OPEN FORM and force the worksheet open then enter your expense on line 1.

[karl404]

Yes, I made a qualifying withdrawal from a 529 plan for my daughters college expenses. The earnings amount related to the withdrawal appears there. I haven’t seen anything in the tax literature that would imply that making a 529 plan withdrawal should disqualify me from taking an educator expense. If there is such a disqualification, could you enlighten me?

[AmyC]

Yes, See Topic No. 458 Educator Expense Deduction | IRS.

[karl404]

Thanks for the info. Doesn’t make sense to me, but I see now why the form is set up that way. Don’t see why we should be punished for being educators and having an educatee in the same year, but asking the tax code to make sense is asking too much. 🙂

thanks again,

karl

[AmyC · Accepted solution]

I have to agree with you. I am glad you found the solution. Have a great year!