As students return to school, parents often focus on buying supplies, clothes, and backpacks. But behind the scenes, educators are also spending their own money on classroom essentials—often without reimbursement. Fortunately, the IRS allows eligible educators to deduct certain out-of-pocket expenses. And starting in 2026, the One Big Beautiful Bill Act (OBBBA) introduces a new opportunity to increase those deductions.
Current Educator Expense Deduction (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 adjusted gross income (AGI), which may help unlock other tax benefits.
- Applies to K–12 teachers, instructors, counselors, principals, and aides who work at least 900 hours per school year.
Qualified expenses include:
- Books, classroom supplies, and computer equipment/software.
- Professional development courses.
- Athletic supplies (only if related to physical education).
For joint filers who are both eligible educators, the deduction can go up to $600, but no more than $300 per person.
What’s Changing in 2026: The OBBBA Update
The OBBBA permanently eliminates the 2% AGI floor for miscellaneous itemized deductions, which had previously blocked many educators from deducting unreimbursed expenses. Starting in 2026:
- Educators can claim a new itemized deduction for classroom expenses.
- This deduction is unlimited and not subject to the 2% AGI floor.
- It is in addition to the $300 above-the-line deduction.
Expanded eligibility includes:
- Interscholastic sports administrators and coaches.
- Health and physical education instructors (supplies no longer need to be athletics-related).
Important: To claim this new deduction, educators must itemize their tax return. With the standard deduction remaining high under the TCJA, itemizing may only benefit those whose total deductions exceed the standard amount.
Tips for Educators
- Track all expenses: Save receipts and document the date, amount, and purpose of each purchase.
- Know your eligibility: Ensure 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.