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BUSINESS Saturday 20 OctOber 2018
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4 tax breaks for teachers

By TINA OREM or other school administra- ($112,000 to $132,000 if you
Associated Press tors to get receipts that will file jointly), you can get a
The flood of education- substantiate the donations, reduced credit. You can’t
related tax advice that she says. Also: You have to get the credit if your MAGI
seems to crest during back- itemize on your tax return is over $66,000 ($132,000 if
to-school season often to deduct charitable con- filing jointly).
centers on students or their tributions. So if you plan on 4. Free File and VITA pro-
parents. But teachers can taking the standard de- grams.
score a few tax breaks, too duction — which has nearly WHAT THEY ARE: For do-it-
— if they do their home- doubled under the new tax yourself taxpayers, Free File
work. Three tax pros share rules — this tactic might not is an IRS program that pro-
their own lesson plans for be for you. vides free brand-name tax
cutting teachers’ tax bills. 3. Lifetime Learning Credit software to people whose
1. Educator Expense De- WHAT IT IS: A tax credit — adjusted gross income is
duction which is a dollar-for-dollar below a certain threshold.
WHAT IT IS: A $250 deduc- reduction in your tax bill For people who want hu-
tion to help recoup out-of- — equal to 20% of the first man help, the Volunteer
pocket costs for outfitting a $10,000 spent on tuition Income Tax Assistance
classroom, getting training and fees. The maximum program (VITA) is a federal
or buying teaching materi- credit is $2,000 per return. grant program that helps
als. HOW IT WORKS: The Life- local organizations offer
HOW IT WORKS: K-12 teach- time Learning credit is free in-person tax-prep ser-
ers can take this deduction available to graduate stu- vices to low- and moder-
regardless of whether they In this July 24, 2017, file photo, pencils are at the ready on a dents, which means it can ate-income people.
itemize on their taxes or take teachers desk at Bruns Academy in Charlotte, N.C. be a great tax break for HOW THEY WORK: You
the standard deduction. Associated Press teachers who are pursu- probably qualify for Free
They’re not the only ones teacher and you’re filing cator expense deduction ing a master’s degree, says File if your adjusted gross
eligible for this tax break, jointly, you might qualify doesn’t cover everything Melinda Nelson, a CPA and income is under the limit
though. School counselors, for a bigger deduction. a teacher has spent out of partner at accounting firm (currently $66,000). Note
principals or aides may also “Sometimes individuals pocket for items that end Henry + Horne in Tempe, that even if the software
be able to take the edu- don’t realize that if they’re up belonging to the school, Arizona. Teachers who are for your federal tax return
cator expenses deduction married and both spouses teachers might be able to simply taking classes to is free, there might be a
if they worked at least 900 are eligible educators, they deduct the rest as a chari- improve job skills can also fee for your state tax re-
hours in a qualifying school actually get $500 for that table contribution, says qualify — pursuing a de- turn. Visit the IRS’s Free File
during the school year, deduction,” she says. Lauri Pitcher, a CPA and gree isn’t required. website to check your eligi-
says Tracie Miller-Nobles, 2. Charitable Contribution president and CEO of ac- You may qualify for this bility and find the right soft-
a certified public accoun- deductions counting firm Lucia & Co. in tax credit if your modified ware package. For VITA,
tant and member of the WHAT IT IS: A tax deduction San Bernardino, California. adjusted gross income the income limit generally
American Institute of CPAs’ for donations to charitable Taking this deduction will (MAGI) is $66,000 or less is $54,000; the IRS website
National CPA Financial Lit- organizations, including require good record-keep- ($132,000 or less if you file also has a VITA directory
eracy Commission. nonprofit schools. ing; it may also require jointly). If your MAGI is be- that can help you find a
If your spouse is also a HOW IT WORKS: If the edu- working with the principal tween $56,000 and $66,000 program in your area.q

Global stocks mixed as Chinese economy slows

By JOE McDONALD global crisis low in the quar- ity risk.”
Associated Press ter ending in September. ANALYST’S TAKE: “The mar-
BEIJING (AP) — Global The downturn adds to pres- kets continue to shudder
stocks were mixed Friday sure on communist leaders as political turbulence fer-
after data showed Chinese as they fight a mounting ments,” said Stephen Innes
economic growth slowed tariff battle with the United of OANDA in a report. The
more than expected but States. Retail spending and Chinese data “offer little
officials moved to shore up investment, key economic solace to risk sentiment,”
the country’s markets. drivers, slowed. Innes said. “There are wor-
KEEPING SCORE: Germa- Finance officials launched rying signs beyond the tariff
ny’s DAX lost 0.3 percent a media blitz to reassure effect that are more con-
to 11,556 and France’s investors about the health cerning,” including weaker
CAC-40 sank 0.8 percent of a stock market, which factory output.
to 5,078. London’s FTSE 100 has tumbled 30 percent ENERGY: Benchmark U.S.
was flat at 7,028 and Italy’s since January. “Economic crude rose 43 cents to
FTSE MIB dropped 1.3 per- A Chinese woman monitors stock prices at a brokerage in fundamentals are good,” $69.08 per barrel in elec-
cent to 18,831 amid con- Beijing, Friday, Oct. 19, 2018. the central bank gover- tronic trading on the New
cerns about a spat with the Associated Press nor, Yi Gang, said. Liu said York Mercantile Exchange.
EU over the country’s bud- Hang Seng advanced nila rose while Taiwan, New the decline in share prices The contract fell $1.10 on
get. 0.4 percent to 25,561.40 Zealand and other South- created “good investment Thursday to $68.65. Brent
ASIA’S DAY: The Shanghai and Seoul’s Kospi added east Asian benchmarks de- opportunities.” The govern- crude, used to price in-
Composite Index rose 2.6 2,156.26. Sydney’s S&P-ASX clined. ment also said insurers will ternational oils, gained 72
percent while Tokyo’s Nik- 200 shed 3 points to 5,939.50 COOLING CHINA: Growth in be allowed to create prod- cents to $80.01 in London. It
kei 225 shed 0.6 percent and India’s Sensex sank 1.5 the world’s second-biggest ucts to help stabilize the retreated 76 cents the pre-
to 22,532.08. Hong Kong’s percent to 34,242.73. Ma- economy sank to a post- market by reducing “liquid- vious session to $79.29.q