Q. I am a professor and my wife is an elementary school teacher, and we both claim deductions for classroom expenses as you suggest. The problem: Her deductions are often challenged by the IRS, and mine never are. Are the rules different for educators who don't teach at the college level?

--Edgar L., Chicago

Brad: Well, Edgar, until a few months ago the answer to your question was, "No, the rules are not different for college versus noncollege educators, sometimes they are just applied differently." We've often received complaints about this, especially at the state level, where professors seem to be allowed considerable leeway for deducting classroom materials, while the auditors seem excessively tight for similar deductions by K-12 educators.

Bob: In prior columns we have given citations for court cases to help K-12 teachers win this battle with the auditors. But now, a little heralded item in the "Job Creation and Worker Assistance Act of 2002," which was passed by Congress and signed into law in March, changed that quite a bit.

Brad: Indeed! Under the new law, effective for all of 2002, K-12 educators are given a $250 "above-the-line" deduction for books, supplies, computer equipment (including software) and other supplementary materials purchased for use in the classroom by a qualified educator.

Bob: A qualified educator is defined as any K-12 teacher, instructor, counselor or principal who works at least 900 hours in a school for the school year. A "school" is any school that provides elementary or secondary education as defined under state law. It still will be necessary to keep receipts to document the purchases and records to show the classroom usage.

Brad: The "above-the-line" remark means that the deduction is not taken on Schedule A, Itemized Deductions, but on Form 1040. This means K-12 educators who qualify will get the deduction regardless of whether they itemize. Also note that this $250 is not subject to the 2 percent of adjusted gross income threshold that applies to employment-related deductions itemized on Schedule A.

Bob: This provision is effective for 2002 and 2003 only, so unless the lawmakers decide to make it permanent, we'll be back to the old situation in two years. And that might not be bad.

Brad: It is our position that if Congress really wants to help educators, then Congress should draft legislation that provides teachers with a tax-credit provision, not a deduction. A credit would mean a dollar-for-dollar refund of every cent spent on the classroom, whereas a deduction only provides a small refund. And that refund will depend on the person's overall tax rate. So, if an educator is in the 15 percent tax bracket, then that educator only gets 15 percent of each dollar spent on classroom supplies.

AFT members Brad Glanville and Bob Fischer are professors at California State University-Chico, and the authors of Educators' Tax Guide, 2002 Edition, which locals can purchase at volume discount prices. Contact the authors at Tax Talk, C/O ETPS, 2260 St. George Lane, Suite #5, Chico, CA 95926, via e-mail at etps@aol.com or visit their Web site at www.etpsbooks.com/.