Teachers and other educators are often expected to spend their own hard-earned money on books, supplies, equipment and other classroom needs. This frequently results in little to no benefit to the educator; however, relief could be on the way. In 2026, eligible educators may have two separate opportunities to deduct qualifying unreimbursed expenses. One is the long-standing educator expense deduction, which is available whether or not the taxpayer itemizes, while the other is a new deduction under the One Big Beautiful Bill Act (OBBBA) and is available exclusively to itemizers.
The long-time education deduction for non-itemizers and itemizers
For many years, the educator expense deduction has allowed eligible educators to deduct some of their unreimbursed out-of-pocket classroom costs. This deduction is an “above-the-line” deduction, meaning you are not required to itemize to claim it. It also reduces your adjusted gross income (AGI), which has an added benefit: AGI-based limits affect a variety of tax breaks, so lowering your AGI might help you maximize your tax breaks overall.
To be eligible, taxpayers must be kindergarten through grade 12 teachers, instructors, counselors, principals, or aides. They are also required to work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.
For 2026, up to $350 of qualified expenses paid during the year that weren’t reimbursed can be deducted. (The deduction limit is $700 for married couples filing a joint return if both spouses are eligible educators, but each spouse can’t go above the $350 limit.) The limit in 2025 was $300. While the limit is annually indexed for inflation, it typically doesn’t go up every year.
Qualified Educator Expenses
- Books
- Classroom supplies
- Computer equipment (including software)
- Professional development courses
- Other materials used in the classroom
- For courses in health and physical education, only costs for supplies related to athletics are considered qualified expenses
The new deduction for itemizers
The OBBBA also created a new itemized deduction for certain educator expenses for tax years beginning after December 31, 2025. The Tax Cuts and Jobs Act’s (TCJA’s) suspension of miscellaneous itemized deductions subject to the 2% of AGI floor has been in place since 2018 and was made permanent by OBBBA. This suspension included unreimbursed employee business expenses such as teachers’ out-of-pocket classroom expenses. However, the OBBBA created a new miscellaneous itemized deduction for these educator expenses that isn’t subject to the 2% of AGI floor or a specific dollar limit.
This new deduction is in addition to the $350 above-the-line deduction. This means that educators eligible for both deductions can first claim the above-the-line deduction and reap the benefits of reducing their AGI and, if they have eligible expenses in excess of $350, claim the itemized deduction for those excess expenses. It should be noted that the same expense can’t be re-used from one deduction to the other.
Who is eligible and what expenses qualify are a little broader for the itemized deduction than for the above-the-line deduction. For example, interscholastic sports administrators and coaches are also eligible. And, for courses in health and physical education, the supplies don’t have to be related to athletics.
Before deciding to claim the itemized deduction, you should determine whether itemizing makes sense for your individual situation. Taxpayers can choose to itemize this along with certain other deductions (such as mortgage interest, property tax and charitable donations) or to take the standard deduction based on their filing status.
Itemizing generally only provides a tax benefit when total itemized deductions exceed the standard deduction. The OBBBA also made the nearly doubled standard deductions under the TCJA permanent, so fewer taxpayers benefit from itemizing. For 2026, the standard deduction is $16,100 for singles and married taxpayers filing separately, $24,150 for heads of household, and $32,200 for married couples filing jointly.
Always keep good records
Do you expect to qualify for one or both of these deductions? Make sure to track your qualifying expenses carefully! Save your receipts to document the date, amount, and purpose of each purpose. These records can help support the deduction claimed and can also help distinguish expenses used for the above-the-line deduction from any additional expenses claimed as an itemized deduction. Contact your Wegner Tax Advisor to discuss which educator expenses you can deduct and how the deductions may affect your 2026 taxes and planning strategies.
