President George W. Bush signed into law on Saturday, March 9, the "Job Creation and Worker Assistance Act of 2002."  The Act includes a new federal income tax deduction of up to $250 per year for the 2002 and 2003 calendar years for a teacher's unreimbursed expenses for certain materials, supplies, and equipment used in the classroom.  The employee deduction is available for a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who works in any school, public or private that provides elementary or secondary education, as determined under State law.  For the 2002 and 2003 taxes, the deduction can be made on the 1040EZ form.  Nationally, teachers spend an average of $400 of their own money annually on classroom supplies, according to the National Education Association's estimates.  It is recommended that teachers keep the receipts for their unreimbursed classroom purchases.

        Since this new law amends the part of the US tax code which deals with business related deductions for employees (26 U.S.C. Sect. 62(a)(2)), it is doubtful that the Internal Revenue Service will make such a deduction available for home schools operating in North Carolina since home school parents are not employees of the home school.

        Questions should be directed to your local Internal Revenue Service office.