EDUCATOR EXPENSE DEDUCTIONS

2026 EDUCATOR EXPENSE DEDUCTIONS — QUICK GUIDE

Educators often pay out of pocket for books, supplies, equipment and other classroom needs. For 2026 there are two possible deductions for qualifying unreimbursed expenses. One is available whether or not you itemize; the other — new under the One Big Beautiful Bill Act (OBBBA) — is only for itemizers.

1. Above-the-line educator expense deduction (itemizers AND non-itemizers)

• An “above-the-line” deduction: you don't have to itemize, and it reduces your adjusted gross income (AGI). A lower AGI can help you qualify for other AGI-based tax breaks.
• Eligible: K-12 teachers, instructors, counselors, principals or aides who work at least 900 hours a school year at a school providing elementary or secondary education under state law.
• 2026 limit: up to $350 of unreimbursed qualified expenses ($700 for a married couple filing jointly if BOTH spouses are eligible educators, but no more than $350 each). Indexed for inflation (it was $300 for 2025).
• Qualified expenses: books, classroom supplies, computer equipment (including software), other classroom materials, and professional development courses. For health and PE courses, supplies count only if related to athletics.

2. New OBBBA itemized educator deduction (itemizers only)

• The OBBBA created a new miscellaneous itemized deduction for educator expenses that is NOT subject to the 2%-of-AGI floor and has NO specific dollar limit.
• Available for eligible expenses incurred after December 31, 2025.
• It's in addition to the $350 above-the-line deduction: claim the above-the-line deduction first (lowering AGI), then, for eligible expenses in excess of $350, claim the itemized deduction. You can't use the same expense for both.
• Eligibility and qualifying expenses are a bit broader: interscholastic sports administrators and coaches also qualify, and for health/PE courses the supplies don't have to be athletics-related.

Should you itemize?

Itemizing only saves tax when your total itemized deductions (mortgage interest, property/SALT tax, charitable gifts, the educator itemized excess, etc.) exceed your standard deduction. The OBBBA made the higher TCJA standard deductions permanent. 2026 standard deductions: $16,100 single and married filing separately; $24,150 head of household; $32,200 married filing jointly. Use the “Itemize vs. Standard” tab to compare.

Keep good records

Track qualifying expenses carefully. Save receipts showing the date, amount and purpose of each purchase. Good records matter even more now that there are two educator deductions with different rules. On the “Expense Entries” tab, mark each expense's eligibility (Both / Itemized only / Not qualifying) and whether you've saved the receipt.