Teacher Deductions in 2025 and Beyond
With a new school year beginning, not only are parents buying new school supplies, but teachers are as well. As teachers prepare their classrooms, many of the expenses they incur to make a welcoming and educational atmosphere are not reimbursed. The tax code provides some relief, and starting next year, educators will have an even greater opportunity thanks to the One Big Beautiful Bill Act (OBBBA).
Who Qualifies for the Current Deduction?
Teachers, instructors, counselors, principals, or aids at the kindergarten through 12th grade level qualify. An additional requirement must be met by working 900 hours or more in a school year at a school providing elementary or secondary education under state law.
The Current Above-the-Line Deduction
Right now, qualifying educators can take advantage of the educator expense deduction, an above-the-line tax break. Because it reduces adjusted gross income (AGI), you don’t need to itemize deductions to benefit, and a lower AGI may also increase eligibility for other tax credits and deductions.
For the 2025 tax year, eligible individuals can deduct up to $300 in unreimbursed classroom expenses. Married couples filing jointly who are both educators may deduct up to $600 total ($300 each). The deduction is indexed for inflation, though the limit doesn’t rise every year. Expenses that can be included are classroom supplies, professional development materials and courses, and technology – both hardware and software. Supply costs for health and physical education teachers are only deductible if related to athletics.
A New Deduction for Teachers Beginning in 2026
The OBBBA permanently eliminates the old rule that suspended miscellaneous itemized deductions subject to the 2% of AGI floor—a suspension that had been in effect since 2018 under the Tax Cuts and Jobs Act. In its place, it creates a new itemized deduction for expenses incurred after December 31, 2025. This deduction is NOT subject to the 2% of AGI floor or specific dollar limit, and it is in addition to the $300 above-the-line deduction.
Who Qualifies for the New Deduction?
The scope of eligibility and qualifying expenses is slightly broader for this new deduction than the “above-the-line” deduction. Physical education course expenses are no longer limited to only those that are athletics related, and interscholastic sports coaches and administrators now qualify.
One caveat: you must itemize deductions to receive the benefits of this deduction. Most taxpayers now claim the standard deduction instead of itemizing; OBBBA has locked in these high standard deductions that are nearly double the pre-2018 amounts.
Recordkeeping
Educators planning to claim either deduction should save receipts and document each purchase with the date, cost, and purpose. Please reach out to your Wegner tax advisor if you have questions about deducting educator expenses.
