Educator expense deductions bring bigger breaks in 2026

As educators head back to the classroom for the new school year, eligible teachers should keep track of what they spend out of pocket on classroom supplies and other qualifying expenses. They bought the markers, the tissues, the extra pencils and the snacks for the kid who forgot lunch again. Add it up, and most teachers spend hundreds of dollars a year keeping their classrooms running, out of their own pockets, with no reimbursement in sight.

The good news? The 2026 inflation adjustment just made that a little less painful. For the 2026 tax year, eligible educators can deduct up to $350 in unreimbursed classroom expenses, up from $300 in prior years. If an educator is married to another eligible educator and they file jointly, each can claim up to $350, for a combined $700.

Who counts as an eligible educator

Educators qualify if, during the school year, they work at least 900 hours as a kindergarten through grade 12 teacher, instructor, counselor, principal or aide at a school that provides elementary or secondary education under state law. Private school educators qualify too, as long as the hours and grade-level requirements are met.

What you can actually deduct

Qualified expenses include books, classroom supplies, computer equipment and related software, other equipment and supplementary materials used in the classroom. Professional development courses count too. If the taxpayer teaches health or physical education, supply costs only qualify if they're for athletic supplies.

In 2026, there are two deductions instead of one

Here's the part many educators don't know yet. Starting with the 2026 tax year, eligible educators may have two potential deductions to work with, not just one.

• Schedule 1 (Form 1040), Additional Income and Adjustments to Income: The educator's expense deduction is an above-the-line adjustment to income, so they don't have to itemize to receive it. This is the $350 deduction covered above.
• Schedule A (Form 1040), Itemized Deductions: Beginning in 2026, qualifying educator expenses may also be eligible for an itemized deduction, thanks to the One Big Beautiful Bill Act (OBBBA).

According to the IRS, you first take the Schedule 1 deduction, then determine whether any additional amount qualifies on Schedule A. The expenses qualifying under the two provisions aren't necessarily identical, so it isn't as simple as carrying your leftover receipts from one form to the other. The Schedule A version won’t be reduced by the old 2%-of-adjusted-gross-income floor that used to apply to unreimbursed employee expenses. It also extends eligibility to coaches and interscholastic sports administrators who meet the same 900-hour test.

Because the two deductions don't automatically cover the same expenses, it's worth reviewing IRS guidance before assuming every dollar above $350 simply rolls onto Schedule A.

How to claim it

Report the educator expense deduction on Schedule 1 (Form 1040), which is filed along with Form 1040 or Form 1040-SR. If they're claiming the new itemized deduction for expenses not claimed on Schedule 1, that goes on Schedule A instead. Advise educator taxpayers to keep receipts, invoices and any documentation showing they weren't reimbursed, just in case.

A few things that can reduce the deduction

Qualified expenses are deductible only to the extent they exceed certain tax-free benefits already received, such as interest excluded from Series EE and I savings bonds used for education, distributions from a qualified state tuition program, tax-free Coverdell withdrawals or reimbursements not reported in Box 1 of your Form W-2. For most educators, this won't come into play, but it's worth knowing before filing a return.

Quick tips for documentation

Provide these tips to your educator clients:

• Save every receipt in one folder, digital or paper, as you go.
• Note the date, item and classroom purpose on each receipt.
• Separate personal purchases from classroom purchases at checkout when possible.
• Track expenses that exceed $350 separately in case you decide to itemize.

Putting it into practice

If your teacher, counselor, principal, aide or coach clients have spent their own money on their students this year, don't leave this deduction on the table. The cap moved up, a whole new deduction path opened for big spenders, and the paperwork is still simple. Review Rev. Proc. 2025-32 and §70110 of the OBBBA for the 2026 rules, then consult updated IRS guidance as it becomes available.