II

106TH CONGRESS

1ST SESSION S. 1127

To amend the Internal Revenue Code of 1986 to eliminate the 2-percent

floor on miscellaneous itemized deductions for reasonable and incidental

expenses related to instruction, teaching, or other educational job-related

activities.

IN THE SENATE OF THE UNITED STATES

MAY 26, 1999

Mr. COVERDELL (for himself and Ms. COLLINS) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to eliminate

the 2-percent floor on miscellaneous itemized deductions

for reasonable and incidental expenses related to instruction, teaching, or other educational job-related activities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; AMENDMENT TO 1986 CODE.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Teacher Deduction for Incidental Expenses Act’’.

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this title an amend8 ment or repeal is expressed in terms of an amendment
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1 to, or repeal of, a section or other provision, the reference

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986.

4 SEC. 2. FINDINGS AND PURPOSE.

5 (a) FINDINGS.—Congress finds that—

6 (1) the foundation of American freedom and de7 mocracy is a strong, effective system of education in

8 which every child has the opportunity to learn in a

9 safe and nurturing environment;

10 (2) America’s first rate education system de11 pends on a partnership between parents, principals,

12 teachers, and children;

13 (3) the success of our Nation for much of the

14 20th century is the result of the hard work and

15 dedication of teachers across the land;

16 (4) while many people spend their lives building

17 careers, teachers spend their careers building lives;

18 (5) our Nation’s teachers serve our children be19 yond the call of duty as coaches, mentors, and advi20 sors without regard to fame or fortune;

21 (6) teachers are often the first to enter the

22 school yard in the morning, as well as, the last to

23 leave in the evening—correcting papers, preparing

24 lessons, or helping a struggling student;
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1 (7) many teachers spend money out of their

2 own pockets to buy paper for art class, pencils for

3 writing, workbooks for math, and other supplies that

4 help teachers teach and students learn; and

5 (8) often these incidental expenses that assist

6 teachers in their mission and provide our students

7 with enhanced learning experiences go unreimbursed

8 by the school or the local district.

9 (b) PURPOSE.—The purpose of this Act is to allow

10 teachers and other education professionals to deduct rea11 sonable and miscellaneous expenses related to education,

12 teaching, or instruction from their adjusted income.

13 SEC. 3. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED

14 DEDUCTIONS NOT TO APPLY TO QUALIFIED

15 INCIDENTAL EXPENSES OF ELEMENTARY

16 AND SECONDARY SCHOOL TEACHERS.

17 (a) IN GENERAL.—Section 67(b) (defining miscella18 neous itemized deductions) is amended by striking ‘‘and’’

19 at the end of paragraph (11), by striking the period at

20 the end of paragraph (12) and inserting ‘‘, and’’, and by

21 adding at the end the following new paragraph:

22 ‘‘(13) any deduction allowable for the qualified

23 incidental expenses of an eligible teacher.’’
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1 (b) DEFINITIONS.—Section 67 (relating to 2-percent

2 floor on miscellaneous itemized deductions) is amended by

3 adding at the end the following new subsection:

4 ‘‘(g) QUALIFIED INCIDENTAL EXPENSES OF ELIGI5 BLE TEACHERS.—For purposes of subsection (b)(13)—

6 ‘‘(1) QUALIFIED INCIDENTAL EXPENSES.—

7 ‘‘(A) IN GENERAL.—The term ‘qualified

8 incidental expenses’ means expenses paid or in9 curred by an eligible teacher in an amount not

10 to exceed $250 for any taxable year—

11 ‘‘(i) for books, supplies, and equip12 ment related to instruction, teaching, or

13 other educational job-related activities of

14 such eligible teacher, and

15 ‘‘(ii) with respect to which a deduction

16 is allowable under section 162 (determined

17 without regard to this section).

18 ‘‘(B) SPECIAL RULE FOR HOME19 SCHOOLING.—Such term shall include expenses

20 described in subparagraph (A)(i) in connection

21 with education provided by homeschooling if the

22 requirements of any applicable State or local

23 law are met with respect to such education.

24 ‘‘(2) ELIGIBLE TEACHER.—
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1 ‘‘(A) IN GENERAL.—The term ‘eligible

2 teacher’ means an individual who is a kinder3 garten through grade 12 classroom teacher, in4 structor, counselor, aide, or principal in an ele5 mentary or secondary school.

6 ‘‘(B) ELEMENTARY OR SECONDARY

7 SCHOOL.—The terms ‘elementary school’ and

8 ‘secondary school’ have the meanings given

9 such terms by section 14101 of the Elementary

10 and Secondary Education Act of 1965 (20

11 U.S.C. 8801), as so in effect.’’

12 (c) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to taxable years beginning after

14 December 31, 1999.

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