A tax break for teachers: Understanding the educator expense deduction in 2025
Each year during Teacher Appreciation Week, we take time to recognize the enormous impact educators have on our communities.
While heartfelt thanks are always meaningful, there’s one small gesture from the federal government to help teachers financially – the Educator Expense Deduction.
What is the educator expense deduction?
The Educator Expense Deduction is a federal tax break that allows eligible K–12 school employees to deduct up to $300 in out-of-pocket classroom expenses from their income for the 2024 and 2025 tax years.
While it doesn’t offset the full financial burden many teachers face, this deduction is one of the few above-the-line deductions – meaning you can claim it without itemizing your return.
Who qualifies as an "educator"?
According to the IRS, the term educator applies broadly and includes:
- Kindergarten through grade 12 teachers
- Instructors
- Counselors
- Principals
- Classroom aides
To be eligible, individuals must:
- Work in a school that provides elementary or secondary education (as defined by state law)
- Work at least 900 hours during the school year
- Be employed by a public or private school (Note: homeschool teachers do not qualify)
What expenses are eligible?
You can deduct unreimbursed expenses for items used in your classroom or for student instruction.
Qualifying expenses include:
- Classroom supplies (books, pens, paper, art materials, etc.)
- Instructional equipment (e.g., computer hardware and software)
- Professional development courses (if they relate to your current subject or students)
- COVID-19-related protective items (e.g., masks, sanitizers – if used during relevant years)
However, the IRS does not allow deductions for:
- Homeschooling expenses
- Nonathletic supplies for health/PE classes
- Reimbursed costs from your school or district
How much can you deduct?
- Up to $300 for a single eligible educator
- Up to $600 for a married couple filing jointly – if both are eligible educators
NOTE: Each spouse is subject to their own $300 limit. If one spent $400 and the other $200, only $500 can be deducted total.
Why this deduction matters
Although modest in value, this deduction is essential due to the ongoing gap between teacher pay and actual expenses.
A 2023 survey by the Association of American Educators found:
- 97% of teachers bought supplies using their own money
- The average annual spend was $673 – more than double the deduction
- Teachers in high-need districts spent even more, averaging $761
How to claim the deduction
You can claim this tax break by reporting your expenses on:
- Schedule 1, Line 11 of IRS Form 1040
No need to itemize – simply attach Schedule 1 to your return.
Tips for maximizing your deduction
Keep good records
While you don’t need to submit receipts, it’s wise to keep:
- Store receipts
- Cancelled checks
- Credit card statements
- Documentation for professional development
This ensures you’re protected in the event of an IRS audit.
Plan purchases accordingly
If you expect to spend more than $300, try to coordinate with your spouse (if also an educator) to maximize your joint deduction.
It’s also worth checking if your school or district offers reimbursement for certain supplies to avoid double-spending.
A call for higher deductions
Given the increasing cost of classroom supplies and the modest $300 limit, advocacy groups such as the AAE are pushing for the deduction to be increased to $1,000 per person. Until then, every dollar matters.
If you're a teacher or school employee preparing your US tax return while living abroad, our team at Taxes for Expats is here to help you claim every deduction you deserve – including the educator expense deduction.
We’ve filed over 50,000 returns for expats across the globe, and you’ll always work with a real human tax expert, never a robot.
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