Teachers' pay

[catjac1975]

When it is reclassified as a hobby, do they have to go back and pay taxes on their deductions?

 

[catjac1975]

The tax laws apply equally to one and all ... you have to have a legitimate business that makes a profit in at least 2 out of 5 years in order to take any expence as a right off against the profit. Otherwise , the activity is reclassified as a hobby and does not qualify for any deduction. One can challenge the rulling , then go to tax court for a judgment. The tax Revenue agency is the enforcement branch of the IRS, and they will collect the tax due as ruled by the tax court, if the tax payer refuses to make tax due payment.

Oh, I know, in regard to laws applying to all. I was being a wise guy.

 

[bobm]

When it is reclassified as a hobby, do they have to go back and pay taxes on their deductions?

Yes ! Not only the tax that is owed and due, but also penalties plus acrued interest untill it is paid in full.

 

[Smart Red]

Very good @Ridgerunner. There is certainly a lot of variables in teacher pay. When I retired with over 30 years and a Masters in Education -- plus enough credits to have garnered a Doctorate -- I was earning just over $50,000.

Before I started college, I worked in a factory and made $18,000 a year with paid holidays and vacation. I took a couple years off to explore a misspent youth in the PNW. Then I returned to work another two years in a factory where I met the future DH. Because of him, I went to school year round for three years to graduate with my Bachelor's in Education. Through the next 8 years I continued to take college classes to improve my skills (and, yes, to move up the pay scale).

12 years after high school, with a lot of time and money invested into an education along with a moderate amount of student-loan debt, I found a pay stub from my first factory job and found that it matched that year's $18,000 in salary as a teacher -- only with zero paid holidays (10 days unpaid at Christmas and 6 unpaid at Easter), zero paid vacation, zero pay during the summer 'lay-off' (and banned from seeking unemployment compensation).

For that salary I was going in before 7:00 am, leaving after 5:00 pm, many nights going back to school to work after DH was in bed, working part of one weekend day, often taking night classes at the same time, and spending my own money for school supplies for my math and hands-on science classes. Lunchroom, playground, and bus duty assignments came out of my planning/correcting time. Night assignments included required parent/teacher meetings (mostly teacher get-togethers on family time), open house, and 'fair share' time supervising sports (volleyball, basketball, wrestling, etc.) usually high school activities held in the elementary building. Summer "free time" included curriculum writing and district planning workshops. I also supervised extra-curriular student performance contests/activities that included after school work and weekend performances and/or judging.

I am not complaining. I had a choice and I chose education. I would have done the work for less because I love teaching -- and because I had a 'sugar daddy' paying the bills. I am just saying that -- at least in my experience -- teachers are underpaid for what they do. Perhaps if the pay was better, better people would go into education.

 

[catjac1975]

When I started teaching the older people I worked with were intellectual well read and knowledgeable in the arts. Old teachers aids were usually certified teachers that could not find a job and often were hired after a few years of being an assistant. Any of the men who had a stay at home wife, more common at the time, worked 2-3 jobs during the year and more over the summer. When I retired there were many teachers who hadn't read a book in years. I attribute that to all of the work done at home, the courses that had to be taken, as well as family obligations. The amount of paper work that had to be done to prove they were doing their job to some bureaucrat was appalling. I remember asking my principal if he wanted me typing at a computer during my prep time or getting ready for my kids. When turning in some of the stupid paper work I would ask if someone was reading it, or was it going in a dusty file cabinet. When I was near retirement getting a descent substitute was impossible. (Our kids were really bad to subs.) The young teachers would come in with their phones, coffee and donut, and fire up my computer. Then they would complain that my student went wild when they couldn't be bothered doing anything that they were being paid to do. I remember one young sub asking why they were so quiet and hard working for me. I must say the ones they actually hired were outstanding.

 

[baymule]

@Ridgerunner you nailed it. Our DD is a college professor at Tyler Junior College and has had a 3% raise ONE time in 7 years. Our DSIL is a 6th grade teacher, 2nd year. Both are up to their eyeballs in college loans. Both go home and after supper and getting kids to bed, they go back to "work" with grading papers, lesson plans and so on. Neither one makes over $40,000. We only live 7 miles from them, but don't really see them much. Certainly not during the week. We also watch the kids to help out and keep both one weekend a month so they can do more work and get caught up on sleep. They both work hard at their jobs, they both love their jobs and want to make a difference in their student's lives.

 

[Nyboy]

Looking back I am ashamed of how my friends and I treated substitute teachers, for some reason we thought they where fair game. We where just bullies.

 

[seedcorn]

Looking back I am ashamed of how my friends and I treated substitute teachers, for some reason we thought they where fair game. We where just bullies.

Most of us can say that. We were stupid kids that did stupid things. Why kids aren't allowed to do certain things.

 

[Carol Dee]

Thank a Teacher . Thanks @Smart Red and @catjac1975 . Teaching is not for the faint of heart or a big money job. We had a columnist once say that if a teacher was paid like a babysitter he/she would earn BIG bucks with 24 students in the class at even just $2 an hour each it would be $48 dollars an hour. I know some days teachers and school staff feel more like babysitters. I sure do ! A daycare on wheels!

 

[bobm]

Yes ! Not only the tax that is owed and due, but also penalties plus acrued interest untill it is paid in full.

I should add ... We are inundated with radio and TV adds by some firms stating that they will stop the IRS in their tracks, fight for their clients in Tax Court, and settle their taxes for pennies on the dollar, etc.. Well , these firms ask for a deposit of $10,000 +/- , to act as guarantee for their services. Just think how that deposit is gobbled up with billing for services. The IRS auditor has done all the work needed for that case in the original case report to the tax payer. These firms use that report as their work and charge a large fee for their " sevices" and do little else except bill for more money. If the tax payer doesn't pony up , very little or no more representation is done but act as they are doing everything possible to "help" their client. The tax payer can represent themselves in tax court and / or their original tax preparor can represent them at their rate of pay. They can also hire an enrolled agent CPA to represent them at a much fower fee that is charged by these advertisers. One has to have proof of their dispute BACKED UP with documents of that proof in order to prevail. The tax payer can settle with the IRS for as little as 2% interest as well as terms of payment on tax due as determined in Tax Court vs. " put it on their credit card" rates or paying it on a bank or relative loan.