What Are the Educator Expense Deductions?

How do the Educator Expense Deductions help teachers cut their tax bill?

Have you spent money this year stocking up on crayons, books and other supplies for your classroom? Have you taken classes to improve your teaching skills that were not paid for by your employer? If you’re an eligible educator, the IRS may let you deduct some of these expenses from your taxes this year.

For 2025, you can deduct up to $300 worth of qualified expenses as an above-the-line deduction.

Starting with the 2026 tax year, there are actually two separate deductions for educator expenses:

• above-the-line Educator Expense Deduction
• itemized Educator Expense Deduction

The above-the-line Educator Expense Deduction is available whether you claim itemized deductions or the Standard Deduction (you can itemize or take the Standard Deduction on your tax return – but not both). As an above-the-line deduction, it also reduces your adjusted gross income (AGI), which can help you qualify for other tax breaks or receive a larger tax break (“above-the-line” deductions got their name because they’re reported on your federal tax return above the line showing your AGI).

The itemized Educator Expense Deduction is available beginning with the 2026 tax year. As the name suggests, you have to itemize to claim this deduction. The itemized Educator Expense Deduction is available to more types of educators and doesn’t have a dollar limit like the above-the-line version of the deduction. Itemized deductions don’t lower your AGI, though.

The itemized deduction was enacted by the “One Big Beautiful Bill” (also known as the Working Families Tax Cut), which was signed into law on July 4, 2025.

Who is eligible for the Educator Expense Deductions?

School teachers, instructors, counselors, principals, and aides are eligible for the above-the-line Educator Expense Deduction if they work:

• for an elementary or secondary school (kindergarten through 12th grade) 
• at least 900 hours during the school year

The itemized version of the Educator Expense Deduction is available to the educators mentioned above, as well as interscholastic sports administrators and coaches (the K-12 and 900 hour requirements apply for the itemized deduction, too).

You don’t qualify for either Educator Expense Deduction if you work at a pre-school, homeschool your own children, or are employed by a college or graduate school.

How much are the Educator Expense Deductions?

The above-the-line Educator Expense Deduction can be as high as $300 for the 2025 tax year ($350 for 2026). If two teachers are married, they can deduct up to $600 on a joint return for 2025, with no more than $300 in expenses for each spouse (up to $700, or $350 per person, for 2026).

There’s no cap on the itemized Educator Expense Deduction. As a result, you may be able to deduct more than $350 of eligible educator expenses for the 2026 tax year if you itemize.

What expenses qualify for the Educator Expense Deductions?

Qualified expenses for the above-the-line Educator Expense Deduction include out-of-pocket costs for items used in the classroom, such as:

• books
• supplies
• equipment (including computer equipment and software)

These expenses also qualify for the itemized Educator Expense Deduction. But the itemized deduction can also be claimed for:

• non-athletic supplies for health or physical education classes
• items that aren’t used in the classroom, but that are used as part of an instructional activity

You also may be eligible to claim either Educator Expense Deduction for professional development courses.

What expenses don't qualify for the Educator Expense Deductions?

There are some restrictions and limitations to what counts as a deductible educator expense. For instance, you can’t deduct expenses reimbursed by your school, covered by a grant, or paid by another source.

The same expenses generally can’t be used to claim both the above-the-line and itemized deduction, either. However, if you have qualified educator expenses that exceed the limit for the above-the-line deduction, you can deduct the excess amount as an itemized deduction.

Example: You’re a teacher who spends $500 on classroom supplies in 2026. If you itemize on your federal income tax return for the 2026 tax year (which you’ll file in 2027), you can claim both a $350 above-the-line deduction and a $150 itemized deduction on your return – for a total of $500 in Educator Expense Deductions.

In addition, eligible educator expenses used to claim either the above-the-line or itemized deduction must be reduced by any tax-free:

• withdrawals from a Coverdell Education Savings Account
• savings bond interest used to pay higher education expenses
• 529 plan distributions or earnings

TurboTax Tip:

You can’t deduct expenses reimbursed by your school, covered by a grant, or paid by another source.

Should you claim the above-the-line or itemized Educator Expense Deduction?

If you’re a teacher or other school employee who paid for eligible educator expenses during the year, whether you should take the above-the-line or itemized Educator Expense Deduction – or both – depends on your situation.

If your Standard Deduction is more than the total amount of all your itemized deductions, then you’ll want to take the Standard Deduction instead of itemizing. If you claim the standard deduction, then you can only claim the above-the-line Educator Expense Deduction.

On the other hand, if you itemize (because your itemized deductions are more than your Standard Deduction), you have the option of taking either the above-the-line or itemized deduction (or both) for educator expenses. However, whether you actually want to claim the itemized deduction may depend on how much you spent during the year on eligible expenses.

For instance, if you have $350 or less of eligible educator expenses in 2026, you may be better off taking the above-the-line deduction for the full amount instead of claiming the itemized deduction. That way, you’ll reduce your AGI, which may help you qualify for or increase the amount of other tax breaks.

If you have more than $350 of eligible expenses in 2026, you might want to split your expenses between the above-the-line and itemized Educator Expense Deductions. In 2026, use the first $350 of expenses to claim the above-the-line deduction – and lower your AGI by that amount – then use the rest to claim the itemized deduction.

If you’re a school coach or sports administrator (such as an athletic director), you’ll have to itemize to deduct educator expenses, since you don’t qualify for the above-the-line deduction.

You’ll also have to itemize if your only educator expenses are for either:

• non-athletic supplies for health or physical education classes
• items used for instructional activities outside a classroom

If you have some expenses that qualify for the above-the-line deduction and some expenses that only qualify for the itemized deduction, then you can claim both deductions if you itemize. In that case, you can use up to $350 (in 2026) of expenses that qualify for either deduction to claim the above-the-line Educator Expense Deduction. You can use the remaining expenses – including those that only qualify for the itemized deduction – to claim the itemized Educator Expense Deduction.

Situation (2026)	Educator Expense Deduction(s)
You take the Standard Deduction	You can only claim the above-the-line deduction.
You itemize, but above-the-line eligible expenses are $350 or less	You can claim the above-the-line deduction to reduce AGI.
You itemize, and above-the-line eligible expenses are greater than $350	You can claim a $350 above-the-line deduction and an itemized deduction for expenses above $350.
You’re a coach or sports administrator	You can only claim the itemized deduction.
Your only eligible expenses are for non-athletic supplies for health or physical education classes	You can only claim the itemized deduction
Your only eligible expenses are for items used for instructional activities outside a classroom	You can only claim the itemized deduction

What are the maximum above-the-line Educator Expense Deduction amounts over time?

The above-the-line Educator Expense Deduction was first allowed for the 2002 tax year. At that time, the maximum deduction was $250 per eligible person.

The maximum deduction is now adjusted for inflation each year, so it's not always the same amount from one year to the next. Here are the maximum deductible amounts (per eligible person) for the 2002 to 2026 tax years:

Tax Year(s)	Maximum Above-the-Line Educator Expense Deduction
2026	$350
2022 to 2025	$300
2002 to 2021	$250

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