As the school year kicks off, much of the attention is on students and their back-to-school needs. But behind the scenes, educators are also investing in their classrooms—often out of their own pockets. Fortunately, the IRS offers tax relief for these expenses, and starting in 2026, a new law will expand those benefits even further.
Current Deduction: What’s Available in 2025
Educators can currently claim an above-the-line deduction of up to $300 for unreimbursed classroom expenses. This deduction:
- Does not require itemizing.
- Reduces your adjusted gross income (AGI), which may help you qualify for other tax breaks.
- Applies to K–12 teachers, instructors, counselors, principals, and aides who work at least 900 hours per school year.
Qualified Expenses Include:
- Books and classroom supplies
- Computer equipment and software
- Professional development courses
- Athletic supplies (if related to physical education)
Joint filers who are both eligible educators can deduct up to $600 total, but no more than $300 each.
What’s New in 2026: The One Big Beautiful Bill Act (OBBBA)
The OBBBA introduces a new itemized deduction for educator expenses, effective for costs incurred after December 31, 2025. This is in addition to the $300 above-the-line deduction.
Key Features of the New Deduction:
- No dollar limit
- Not subject to the 2% AGI floor
- Requires itemizing your deductions
Expanded Eligibility:
- Includes interscholastic sports administrators and coaches
- For health and physical education, supplies don’t need to be athletics-related
Note: You’ll need to itemize your deductions to claim this new benefit. With the standard deduction remaining high under the TCJA, itemizing only makes sense if your total deductions exceed the standard amount.
Pro Tips for Educators
- Track your expenses: Save receipts and document the date, amount, and purpose of each purchase.
- Know your eligibility: Make sure you meet the 900-hour requirement and work in a qualifying K–12 institution.
- Plan ahead: Consider whether itemizing will benefit you in 2026 and beyond.