The Challenge: A public school teacher spent heavily out-of-pocket on classroom supplies but assumed they couldn’t deduct it because they didn’t have enough expenses to itemize. They also paid for evening classes to get their Master’s degree. The Moorhead Financials Solution: * We applied the Educator Expense Deduction, which is an “above-the-line” deduction that doesn’t require itemizing.
- We also successfully claimed the Lifetime Learning Credit for their graduate school tuition. The Result: These combined strategies bypassed the standard deduction limitations, yielding a $1,500 IRS tax refund.