Unreimbursed Expenses Deduction for Educators
The school year may be ending, but eligible educators and teachers should be aware that they could be eligible for a deduction for certain out of pocket expenses paid for their classrooms throughout the year. Many teachers use their own money to buy supplies and are not reimbursed for it. For 2026, eligible educators and teachers may be able to claim an above-the-line deduction in computing their adjusted gross income (AGI) for qualifying expenses.
For the calendar year 2026, eligible teachers/educators may claim a deduction of up to $350 per year for certain unreimbursed expenses. The amount increases to $700 if two qualified educators are married and file jointly. In addition, the One Big Beautiful Bill Act (OBBBA) allows those educators who itemize their returns to also deduct additional qualified unreimbursed employee expenses that exceed the above-the-line limit. The new itemized deduction is exempt from the 2% AGI floor that applies to most miscellaneous itemized deductions. Deductible expenses include books, supplies, and computer equipment used as part of instructional activity.
Someone is considered an eligible educator if they:
- Teach any grade from kindergarten to 12th grade,
- Are a teacher, instructor, counselor, principal, or aide,
- Work at least 900 hours during the school year, or
- Work in a school that provided elementary or secondary education
Qualified expenses that are eligible for reimbursement include:
- Professional development courses
- Books
- Supplies
- Computer equipment, including software and services
- Supplementary materials
- Athletic supplies, only for health and physical education
- Face masks
- Disinfectant
- Hand soap/sanitizer
- Disposable gloves
- Tape, paint, chalk, or physical barriers (such as plexiglass) to guide social distancing
- Air purifiers
- Any other items recommended by the CDC to prevent the spread of COVID-19
Contact Us
If you have questions about the information outlined above or need assistance with another tax or accounting issue, Klatzkin can help. For additional information call 609-890-9189 or click here to contact us. We look forward to speaking with you soon.