Tax Breaks for Teachers: How to Claim the Educator Expense Deduction

Updated for tax year 2026

Teachers are always looking for creative ways to enhance their students’ learning experience. Unfortunately, tight school budgets stifle many of those efforts, and educators are often forced to spend their own money on materials.

But there is a silver lining. The Internal Revenue Service (IRS) offers a tax break called the educator expense deduction, designed to help offset some costs for teacher taxpayers. In this article, we’ll help you understand what you can deduct as a teacher and how to claim these benefits on your federal tax return.

At a glance:

Eligible K-12 educators can deduct up to $350 in unreimbursed classroom expenses per year starting in 2026 (up from $300 previously).
New for tax year 2026, an itemized deduction is also available for educator expenses.
Qualified expenses include school supplies, PPE, professional development, subscriptions, and computer equipment.
You can claim this deduction even if you don’t itemize.

What is the educator expense deduction?

The educator expense deduction is a tax benefit that allows eligible teachers to deduct certain out-of-pocket classroom expenses on their federal tax return. This deduction helps offset the costs of school supplies, professional development courses, and other qualified teaching expenses.

This deduction is considered an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) and you can claim it even if you don’t itemize deductions on your tax return. This makes it accessible to a wide range of educators, regardless of how they choose to file their taxes.

What is the deduction amount for the current tax year?

For the 2026 tax year, eligible teachers can deduct up to $350 in unreimbursed expenses. Previously, the limit was $300 for tax years 2022-2025. If both spouses are eligible educators and file jointly, they can each claim up to $350, for a combined total of $700 (up from $600 in 2025).

These amounts will now be adjusted for inflation in future years, so the limit may increase over time.

Can you deduct more than $350 in classroom expenses?

Yes, but only if you itemize. Starting with the 2026 tax year, educators who itemize deductions may have another option for deducting teaching expenses.

You can still claim up to $350 as an above-the-line deduction on Schedule 1 (Form 1040), even if you take the standard deduction. But now, if you itemize and your total itemized deductions exceed the standard deduction, you may also be able to deduct qualifying educator expenses above $350 on Schedule A.

Unlike the above-the-line deduction, the itemized educator expense deduction is not limited to a certain dollar amount. But note you cannot claim the same expense twice — each dollar counts toward either the above-the-line deduction or the itemized deduction, not both.

Who qualifies as an eligible educator?

You do not have to be a classroom teacher to qualify for every version of this deduction, but you must meet specific requirements. Starting in 2026, who qualifies depends on whether you are claiming the above-the-line deduction or the itemized deduction.

Above-the-line educator deduction

Even if you take the standard deduction, you may claim up to $350 on Schedule 1 (Form 1040) if all the following apply:

You are a K-12 teacher, instructor, counselor, principal, or classroom aide.
You work in a school that provides elementary or secondary education as determined under state law (includes public schools and private schools).
You work at least 900 hours during the school year.

Itemized educator deduction (starting in 2026)

If you itemize deductions, you may be able to deduct qualifying educator expenses above $350 on Schedule A. Eligibility rules are similar to the above-the-line deduction; however, more people can qualify for the itemized version.

You may qualify if all the following apply:

You are a K-12 teacher, instructor, counselor, principal, classroom aide, interscholastic sports administrator, or coach.
You work in a school that provides elementary or secondary education as determined under state law (public or private).
You work at least 900 hours during the school year.

Tax tip: Coaches and athletic directors typically only qualify for the itemized deduction, not the above-the-line deduction.

Who does not qualify

Preschool teachers, homeschool educators, and those working for a college or graduate school are not eligible for either deduction.

What classroom expenses can teachers deduct?

To qualify for either deduction, expenses must be unreimbursed and directly related to teaching. Starting in the 2026 tax year, which expenses count depends on whether you claim the above-the-line deduction or the itemized deduction.

Qualified expenses for the above-the-line deduction

You can deduct up to $350 on Schedule 1 for ordinary and necessary expenses you paid for:

School supplies like notebooks, pencils, and markers
Classroom supplies such as bulletin board materials and storage bins
Personal protective equipment (PPE), including sanitizer, disinfectant, plexiglass, and air purifiers
Professional development courses that enhance teaching skills
Educational subscriptions for classroom use
Computer equipment, software, and supplementary materials used in the classroom
Athletic supplies for health or physical education courses

Qualified expenses for the itemized deduction (starting in 2026)

The itemized rules laid out in the Working Families Tax Cut Act (One Big Beautiful Bill) are slightly broader than the above-the-line rules. Qualified expenses may include everything listed above, plus:

Non-athletic supplies for health or physical education courses
Items used as part of an instructional activity, even if they are not used inside the classroom (for example, lab materials or field trip supplies tied to instruction)

Factors that may reduce your educator expense deduction

Keep in mind that expenses can only be deducted if they exceed the following amounts for the tax year:

The interest earned on savings bonds (series EE and I) that you do not need to report as income due to the Education Savings Bond Program
Any distributions from qualified state tuition programs that you exclude from income
Any tax-free withdrawals from Coverdell education savings accounts
Any reimbursements you got for expenses that aren’t reported in box 1 of Form W-2

For more info, check out IRS Publication 529.

Tax tip: Be sure to save receipts and records of all out-of-pocket purchases to support your deduction in case the IRS asks for documentation.

Other tax breaks for teachers

Beyond the educator expense deduction, teachers may qualify for additional tax deductions and tax credits, such as:

Education credits for advanced degrees – The Lifetime Learning Credit helps cover higher education expenses for those pursuing an advanced degree or taking professional development courses.
Flexible spending accounts (FSAs) – Some school districts offer FSAs, which allow teachers to set aside pre-tax dollars for qualified expenses. While you can’t use these accounts to pay for pencils and notebooks, you can spend them on health-related supplies for your classroom, such as first aid kits and PPE.
State tax credits – Certain states offer additional tax credits or deductions for educators who spend their own money on classroom materials. Check your state law to see what’s available in your area.

How to claim teacher tax deductions on your income tax return

To claim the educator expense deduction, enter it on Schedule 1 (Form 1040) of your federal tax return. It’s an above-the-line deduction, meaning you don’t need to itemize deductions to claim it.

TaxAct® can walk you through how to claim the educator expense deduction when you e-file using our tax preparation software. Here are some ways to report education expenses in the TaxAct program, depending on which version you are using:

Dashboard (online)

From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Employment Expenses drop-down.
Click Add beside Teacher (Educator) Expenses.
Complete the rest of the interview process to enter your educator expenses as shown below.

Classic (online)

From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
Click the Other Adjustments dropdown, then click Educator expense deduction as shown below.

Continue with the interview process to enter your information.

Desktop

From within your TaxAct return, click Federal.
Click the Other adjustments drop-down, then click Educator expense deduction.
Complete the rest of the interview process.

Tax tip: Self-employed tutors or education consultants can deduct classroom expenses as business expenses on Schedule C of their tax return. We can help with that, too — check out TaxAct Self-Employed.

Common mistakes to avoid when filing

Failing to keep receipts for unreimbursed expenses
Confusing a tax deduction with a tax credit
Misreporting taxable income or missing potential tax deductions

FAQs about teacher tax deductions

Can homeschooling parents claim the educator expense deduction?

No, the IRS does not recognize homeschool parents as eligible educators for this deduction. Only kindergarten through grade 12 educators working for eligible institutions qualify.

Do physical education teachers qualify?

Yes, as long as they meet the 900-hour requirement in an eligible school.

Can I still take a deduction if I am partially reimbursed?

If you are reimbursed for supplies, you must subtract the reimbursement amount from the cost of the supplies. For example, if you spend $200 on supplies and receive $100 in reimbursement, you can deduct the remaining $100.

What kinds of records do I need to keep?

Save all receipts for books and other classroom supplies, and highlight or mark the line items on each receipt every time you make a qualifying purchase. This will make it easier to separate work and personal expenses later.
If you use personal finance software or an online record-keeping system, categorize each expense throughout the year to stay organized.

What if my spouse and I are both teachers?

If you and your spouse are both eligible educators and file jointly, you can deduct up to $700 total for the 2026 tax year (up to $350 per spouse). For 2025, the limit was $600 total ($300 per spouse).
If you file separate returns, each spouse can deduct up to the individual limit on their own return.

I spent more than the limit. Can I deduct the rest?

For the 2025 tax year, you generally cannot deduct classroom expenses above $300 on your federal return unless your state allows a separate deduction.
For the 2026 tax year, the above-the-line deduction cap was increased to $350. But if you itemize deductions and your total itemized deductions are greater than the standard deduction, you may be able to deduct qualifying educator expenses above $350 on Schedule A. You just can’t deduct the same expense twice.
That said, a handful of states still allow a deduction for unreimbursed employee expenses — including teachers — on your state return. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania are among them, though rules vary. Check your state’s Department of Revenue for details.

Do coaches or athletic directors qualify for the educator expense deduction?

It depends on your role and how you claim the deduction. Coaches and interscholastic sports administrators (like athletic directors) who meet the K-12 and 900-hour requirements may qualify for the itemized educator expense deduction starting in 2026 if they itemize on Schedule A.
However, they generally do not qualify for the above-the-line deduction on Schedule 1, which is limited to teachers, instructors, counselors, principals, and classroom aides. If you are unsure which applies to you, TaxAct can help you determine what tax deductions you qualify for based on your answers to our step-by-step interview questions.

Does my state law offer additional educator tax benefits?

Some states offer additional tax deductions or tax credits for teachers, such as the unreimbursed employee expenses mentioned previously. If you’re unsure, check with your state’s Department of Taxation for details.

The bottom line

By taking advantage of the educator expense deduction and other available tax deductions, you can reduce your taxable income and keep more of your hard-earned money at tax time. When you’re ready to file your federal income tax return, TaxAct can help you claim all the teacher tax deductions you qualify for.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The One Big Beautiful Bill is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Internal Revenue Service. “Topic No. 458, Educator Expense Deduction.” IRS.gov, 15 Apr. 2026.
Internal Revenue Service. “Publication 529 (12/2020), Miscellaneous Deductions.” IRS.gov, Dec. 2020.
Internal Revenue Service. “About Form 1040, U.S. Individual Income Tax Return.” IRS.gov, 19 May 2026.
Internal Revenue Service. “About Schedule A (Form 1040), Itemized Deductions.” IRS.gov, 30 Mar. 2026.
Internal Revenue Service. “About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship).” IRS.gov, 28 June 2026.
Internal Revenue Service. “Education Credits: American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC).” IRS.gov, 4 June 2026.
Internal Revenue Service. “Revenue Procedure 2024-40.” IRS.gov, 2024.
Internal Revenue Service. “Revenue Procedure 2025-32.” IRS.gov, 9 Oct. 2025.
Internal Revenue Service. “IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments from the One, Big, Beautiful Bill.” IR-2025-103, 9 Oct. 2025.
Internal Revenue Service. “Out-of-Pocket Classroom Costs Could Be Offset with Educator Expense Deduction.” IRS Tax Tip 2025-58, 20 Aug. 2025.
Internal Revenue Service. “Out-of-Pocket Classroom Costs Could Be Offset with Educator Expense Deduction.” IRS Tax Tip 2025-58, 20 Aug. 2025.
One Big Beautiful Bill Act, Pub. L. No. 119-21, 139 Stat. 72 (2025). H.R. 1, 119th Cong. (enacted 4 July 2025), § 70110.