Author Topic: Rural Alaska Teacher Housing Deduction  (Read 159 times)

braxton

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Rural Alaska Teacher Housing Deduction
« on: March 26, 2017, 09:55:50 PM »
My wife and I teach in a rural village in Alaska. We rent an apartment from our school district for $990 per month, which includes water, sewer, electricity, and heating fuel. We could choose to rent from someone in our village, but none of the other houses have running water. We cannot buy a house or land in our village, because we are not Alaska Native.

I have heard from other rural Alaska teachers that they "deduct" their rent payments by entering their total rent payments for the year as a negative number on line 21, "other income", of their 1040. They claim they can do this because we live in "qualified campus lodging" that is in section 119 of the tax code. When they submit their taxes, they attach their December pay stub which indicates the total amount they paid in rent along with the following statement:

____________________________________ is a Teacher at a rural Alaska school. During the tax year, s/he lived in “qualified campus lodging” provided by ______________________________ School District. S/He paid an amount of rent that is in excess of 5% of the appraised value of the lodging occupied. Per code section 119 (d), s/he deducts the Rent paid on line 21 of form 1040.

I read section 119, but could not decide if it applies to teachers in rural Alaska. Any thoughts?