So I have a problem. A good problem, I suppose, but a problem all the same.
On back-to-school night, I put out a sheet of paper listing things I would love if parents could donate--books for the in-class library, lined paper, stuff like that. It's been successful; I've received a couple boxes of books, a box of printer paper--even a file cabinet. One parent even gave me a check for $25 to bulk up the library.
A week after back-to-school, a student brought an envelope from home that contained ten Scratchers--the California Lotto tickets you scratch with a quarter. I said thank you and put them in my desk and forgot all about them. I'm not much of a Lotto believer.
Anyway, this week I'm in the process of moving my classroom from one portable to another and I ran across the envelope of tickets. I scratched off the first one then tried to puzzle out the results. This led to me reading the instructions on the back of the ticket and realizing if you scratch of everything you invalidate the ticket.
So I was more careful with the other nine. And I ended up with two winners.
The first was for $40. The second is for $650. Which is where my problem comes in. If I cash it, I will owe federal tax on it next year. But the money isn't for me, it's for my classroom. But if I spend it on my classroom without declaring it, I could get in trouble.
$690 is a lot of pencils, but I don't know if it's a lot of CPA. And if I spend it and then deduct it? Well, I can only deduct $250 worth of educator expenses. So I'm really not sure how to go about this.
Any of you familiar with money laundering?