At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But teachers are also buying school supplies for their classrooms. And in many cases, they don’t receive reimbursement. Fortunately, they may be able to deduct some of these expenses on their tax returns. And, beginning next year, eligible educators will have an additional deduction opportunity under the One Big Beautiful Bill Act (OBBBA). The current above-the-line deduction Eligible educators can deduct some of their unreimbursed out-of-pocket classroom costs under the educator expense deduction. This is an “above-the-line” deduction, which means you don’t have to itemize and it reduces your adjusted gross income (AGI), which has...

As appearing in IRS Tax Tip 2025-58 With back-to-school, comes potential out-of-pockets costs for educators. The Educator Expense Deduction lets eligible teachers and administrators deduct certain expenses from their taxes. Eligible educators The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide and work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. About this deduction Educators can deduct up to $300 of certain trade or business expenses that weren't reimbursed by their employer, grant or other source. If two married educators are filing a joint return, the limit rises to $600. These taxpayers can't deduct more than $300 each. Qualified expenses are amounts the taxpayer paid themselves during the tax year. Some of the...