Teacher Tax Breaks: Deducting Classroom Expenses in 2025 and Beyond

As we celebrate National Education Week, it’s a perfect time to recognize the invaluable work educators do—and to highlight the tax benefits designed to support them. Many teachers and school staff use their own money to create better learning environments, often without reimbursement. Fortunately, the tax code offers some relief—and that relief is expanding soon.

Current Educator Expense Deduction (2025)

If you're a K–12 educator, you may qualify for an above-the-line deduction of up to $300 for unreimbursed classroom expenses in 2025. Married educators filing jointly can deduct up to $600, but no more than $300 each.

This deduction:

  • Does not require itemizing

  • Reduces your adjusted gross income (AGI), which may improve eligibility for other tax benefits

Who qualifies?

  • Teachers, instructors, counselors, principals, and aides

  • Must work 900+ hours during the school year at a state-recognized K–12 school

What counts as a qualified expense?

  • Classroom supplies, books, and materials

  • Computer equipment and educational software

  • Professional development courses

  • For health/PE educators: supplies related to athletics

Looking Ahead: A New Deduction for Educators in 2026

Starting in 2026, the One Big Beautiful Bill Act (OBBBA) introduces an additional miscellaneous itemized deduction for educator expenses—offering even more tax savings.

Key features of the new deduction:

  • No specific dollar limit

  • Not subject to the 2% AGI threshold

  • Available in addition to the current above-the-line deduction

Expanded eligibility:

  • Now includes interscholastic sports coaches and administrators

  • For health/PE courses, all supply expenses qualify—not just athletics-related ones

Note: To claim this new deduction, you’ll need to itemize. But with the standard deduction remaining high (thanks to the OBBBA), itemizing only makes sense if your total deductions exceed that amount.

Track Your Expenses Year-Round

Whether you’re claiming a deduction this year or preparing for next year’s expanded benefits, keeping accurate records is essential:

  • Save receipts

  • Document the date, amount, and educational purpose of each expense

If you have questions about educator deductions or want help planning ahead, contact us. We're honored to support those who support our schools.

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