 We are in our example form 1040 populated with Lassert tax software. You don't need tax software to follow along, but it's a great tool to run scenario scenario with. You can also get access to the form 1040 related forms and schedules at the IRS website, irs.gov, irs.gov, irs.gov, v for victory over tax form. Okay, we've got our starting point here. Single filer, Mr. Anderson, dependents, none, W2 income. We've got 100,000 and then 12,950 for the standard deduction, getting us to the 87,050 for the taxable income. That's mirrored on our worksheet in a formula basis here, 87,050, letting the tax software do the tax on page number two. Numero does 14774, 15,000 withheld. It gets us to the 226, and there we have it mirrored in our formula. So now we're going to be focusing in on the educator. So these are the above the line deductions. So we're looking at the adjustments, the above the line adjustments to income, as opposed to the standard deductions and the itemized deductions. Noting that most of the deductions people often think of charitable deductions, home mortgage interest deduction, taxes deduction, property tax, and so on are the itemized deductions, which can only be taken if they're greater than the standard deduction or only should be taken if greater than the standard deduction, the above the line deductions or adjustments to income are up top. You can also call them Schedule 1 deductions because in a fairly recent change, we've got the Schedule 1 items now. They're important difference between them and other deductions in part as well because they're going to be getting us down to this kind of stop point or pit stop along the way to taxable income of the adjusted gross income, which is going to be the number typically used when we think about phaseouts of credits and whatnot. OK, that in mind, I'm going to hit the little item here and go to the Schedule 1. So page, this is Schedule 1, additional income and adjustments to income. Part 1 is the income part, adding more lines to the income. Part 2 is on page 2. These are the adjustments to income or the above the line deductions to Schedule 1 deductions. We're looking first at the educator expenses. Now note from a practical standpoint, you can kind of think about the educator expenses as if someone qualifies as an educator for the purposes of the educator expenses, they're probably going to be eligible to take the deductions because they probably have spent more than $300, which is the minimum per educator for qualified education expenses. Of course, they would need the support and whatnot in order to provide that evidence in the event of an audit, but it's a fairly low threshold. So you would kind of, you just kind of have to know because this is going to be one of those types of rules that are specific towards a particular industry, which the tax code, you know, usually you kind of would think that they wouldn't do things that are particular for a particular industry. In other words, normally the idea of the tax code is that the kind of deductions that you would get are those that you would think you needed to get in order to generate revenue, as we can see on the Schedule C, where we have the deduction of the expenses here, which we had to expend in order to generate the revenue. Therefore, we're taxed on the bottom line of the income statement that pulls into the form 1040. That's not the case for other income on the 1040 like W2 income because it's assumed that the expenses for us to generate that revenue are provided by the employer, which isn't always the case for instructors as well as many industries. So, but that's kind of the assumption. So that kind of simplifies the tax code. And that means we don't have all these deductions that are there for what you would think would be a natural purpose for a deduction. And then they start adding deductions for political purposes and because they're trying to manipulate your behavior and whatnot in certain ways, which may be beneficial or may not be beneficial. It depends on your perspective. I don't like being manipulated personally. But in any case, that means that if I go then to the Schedule 1 page 2, these are kind of deductions that were kind of political, you would think, with the teacher's unions possibly putting them in. But they happened a long time ago and they've kind of stuck around. So, although they might have increased the amounts a little bit, they haven't been increasing them with inflation since they first put them in there. So now you've got these expenses related to that industry of a teacher. So whenever you see a teacher, you're going to say, OK, maybe they qualify for the educator expenses. Most likely they do. If I populate in the educator expenses, like $500, it's going to cap it at $300 because that's the cap for the educator expenses. So it's a fairly low cap on it. So you might want to just realize that if you see there's an educator, just realize, OK, I'm going to have to pick up the educator expense. It's a pretty low cap. But it's something that I can at least be able to pick up. So there we've got the $100,000 and the $300 for the adjustments to income. If I want to mirror that on my tax formula over here, we've got the Schedule 1. I have the alimony unemployment. Let's add some more lines here. More lines. I'm going to insert and say that we have what do I want to call it? Teacher expenses. What do they call it? What do they call it? They call it educator expenses. I knew that. Educator expenses. Now, you might just have one line item, but I'll make two lines because you might have a married couple, both of them being teachers. And you could just put $600 if they were two teachers. But I'll break it out separately so that we have the two lines. You shouldn't have more than two lines. I'll make that blue. And this will be the total, total edu-k-tor expenses. I'll pull it out to the outside. Sum it up. And there we have it. So this is going to be edu-k-tor $300 at the cap. Boom. So it sums it up. Now, you might come up with a fancy formula here. You could say, if it goes over $300, you cap it at $300. But I would just kind of memorize the cap or maybe put it up top and just say, there's your cap, $300 per person, so that you can kind of memorize that that's how it's going to be. That's just how it's going to be. So then I'll pull that over. That pulls over to the first page. And so now it didn't pull over. Hold on a second. I just did that whole thing to the wrong schedule. I should have put it onto the adjustment schedule over here. That's embarrassing. All right, let's see if I can fix that fairly easily. I'll try to put a note so you don't do that. Insert. But now that I'll just fix it here, I could fix it. It's not a problem. Don't worry.