Tax Breaks for Teachers: How to Claim the Educator Expense Deduction

Teachers are always looking for creative ways to enhance their students’ learning experience. Unfortunately, tight school budgets stifle many of those efforts, and educators are often forced to spend their own money on materials. The struggle is real.

But there is a silver lining. The Internal Revenue Service (IRS) offers a tax break called educator expense deduction designed to help offset some costs for teacher taxpayers. In this article, we’ll help you understand what you can deduct as a teacher and how to claim these benefits on your federal tax return.

At a glance:

• Eligible K-12 educators can deduct up to $300 in unreimbursed classroom expenses per year.
• Qualified expenses include school supplies, PPE, professional development, subscriptions, and computer equipment.
• You can claim this deduction even if you don’t itemize.

Understanding the educator expense tax deduction

What is the educator expense deduction?

The educator expense deduction is a tax benefit that allows eligible teachers to deduct certain out-of-pocket classroom expenses on their federal tax return. This deduction helps offset the costs of school supplies, professional development courses, and other qualified expenses related to teaching.

This deduction is considered an above-the-line deduction, meaning you can claim it even if you don’t itemize deductions on your tax return. This makes it accessible to a wide range of educators, regardless of how they choose to file their taxes.

What is the deduction amount for the current tax year?

For the 2024 and 2025 tax years, eligible teachers can deduct up to $300 in unreimbursed expenses. If both spouses are eligible educators and file jointly, they can each claim up to $300, for a total of $600.

Who qualifies as an eligible educator?

You don’t necessarily have to be a teacher to qualify for this deduction, but you must meet all the following requirements:

• You are a K-12 teacher, instructor, counselor, principal, or classroom aide.
• You work in a school that provides elementary or secondary education as determined under state law (this could include public schools or private schools).
• You work at least 900 hours during the school year.

Unfortunately, preschool teachers, homeschool educators, and those working for a college or graduate school are not eligible for this deduction.

What classroom expenses can teachers deduct?

To qualify for this tax deduction, expenses must be unreimbursed and directly related to teaching. Some examples of qualified expenses include:

• School supplies like notebooks, pencils, and markers
• Classroom supplies such as bulletin board materials and storage bins
• Personal protective equipment (PPE), including sanitizer, disinfectant, plexiglass, and air purifiers
• Professional development courses that enhance teaching skills
• Educational subscriptions for classroom use
• Computer equipment, software, and supplementary materials used for instruction

Factors that may reduce your educator expense deduction

Keep in mind that expenses can only be deducted if they exceed the following amounts for the tax year:

• The interest earned on savings bonds (series EE and I) that you do not need to report as income due to the Education Savings Bond Program.
• Any distributions from qualified state tuition programs that you exclude from income.
• Any tax-free withdrawals from Coverdell education savings accounts.
• Any reimbursements you got for expenses that aren’t reported in box 1 of Form W-2.

For more info, check out IRS Publication 529.

Tax Tip: Be sure to save receipts and records of all out-of-pocket purchases to support your deduction in case the IRS asks for documentation.

Other tax breaks for teachers

Beyond the educator expense deduction, teachers may qualify for additional tax deductions and tax credits, such as:

• Education credits for advanced degrees – The Lifetime Learning Credit helps cover higher education expenses for those pursuing an advanced degree or taking professional development courses.
• Flexible spending accounts (FSAs) – Some school districts offer FSAs, which allow teachers to set aside pre-tax dollars for qualified expenses. While you can’t use these accounts to pay for pencils and notebooks, you can spend it on health-related supplies for your classroom, such as first aid kits and PPE.
• State tax credits – Certain states offer additional tax credits or deductions for educators who spend their own money on classroom materials. Check your state law to see what’s available in your area.

How to claim teacher tax deductions on your income tax return

To claim the educator expense deduction, enter it on Schedule 1 (Form 1040) of your federal tax return. It’s an above-the-line deduction, meaning you don’t need to itemize deductions to claim it.

TaxAct® can walk you through how to claim the educator expense deduction when you e-file using our tax preparation software. To report education expenses in the TaxAct program:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Other Adjustments dropdown, then click Educator expense deduction as shown below.

3. Continue with the interview process to enter your information.

Self-employed tutors or education consultants can deduct classroom expenses as business expenses on Schedule C of their tax return. We can help with that, too — check out TaxAct Self-Employed.

Common mistakes to avoid when filing

• Failing to keep receipts for unreimbursed expenses
• Confusing a tax deduction with a tax credit
• Misreporting taxable income or missing potential tax deductions

FAQs about teacher tax deductions

Can homeschooling parents claim the educator expense deduction?

No, unfortunately the IRS does not recognize homeschool parents as eligible educators for this deduction. Only kindergarten through grade 12 educators working for eligible institutions qualify.

Do physical education teachers qualify?

Yes, as long as they meet the 900-hour requirement in an eligible school!

Can I still take a deduction if I am partially reimbursed?

If you are reimbursed for supplies, you must subtract the reimbursement amount from the cost of the supplies. For example, if you spend $200 on supplies and receive $100 in reimbursement, you can deduct the remaining 100.

What kinds of records do I need to keep?

Save all receipts for books and other classroom supplies. Highlight or mark line items on receipts every time you make a qualifying purchase. This will make it easier to separate work and personal expenses later.

If you use personal finance software or an online record-keeping system, categorize each expense throughout the year to stay organized.

What if my spouse and I are both teachers?

If you and your spouse are both eligible educators, you can deduct a maximum of $600. If you file separate tax returns, you can each deduct $300 on your respective tax returns.

I spent more than $300. Can I deduct the rest?

Unfortunately, not in most cases. The Tax Cuts and Jobs Act of 2017 eliminated the deduction for unreimbursed employee expenses for most professions — including teachers.

That said, a handful of states still allow that deduction for employees, including teachers, so you can claim it on your state return, depending on where you reside. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania all allow a deduction for unreimbursed employee expenses. However, it’s only available as a miscellaneous itemized deduction.

Does my state law offer additional educator tax benefits?

Some states offer extra tax deductions or tax credits for teachers, like the unreimbursed employee expenses mentioned above. If you’re unsure, check with your state’s Department of Taxation for details.

The bottom line

By taking advantage of the Educator expense deduction and other available tax deductions, you can reduce your taxable income and keep more money in your pocket during tax season. When you’re ready to file your federal income tax return, TaxAct makes tax filing easy — we can help you claim all the teacher tax deductions you qualify for.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

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