If you’re a teacher, coach, or other eligible educator who spends money out of your own pocket for your students, there are some important tax changes coming in 2026 that could help reduce your tax bill.
Increased Educator Expense Deduction
For the 2025 tax year, eligible educators can deduct up to $300 of unreimbursed classroom expenses directly on Schedule 1 of Form 1040.
Beginning in 2026, the maximum deduction increases to $350 per eligible educator.
This deduction is especially valuable because it is an “above-the-line” deduction, meaning you can claim it whether you take the standard deduction or itemize your deductions.
Coaches Can Now Qualify
One of the most significant changes for 2026 is the expansion of eligibility to include certain coaches and interscholastic sports administrators.
In the past, many coaches who spent their own money on equipment, supplies, and student activities were unable to claim the educator expense deduction. Under the new rules, qualifying coaches may now be able to deduct eligible unreimbursed expenses.
What Expenses Qualify?
Common educator expenses may include:
- Classroom supplies
- Books
- Educational materials
- Computer equipment and software
- Professional development courses
- Athletic equipment and supplies purchased by qualifying coaches
- Other materials used for student instruction or activities
Be sure to keep receipts and documentation for all expenses throughout the year.
What Happens If You Spend More Than $350?
Many educators spend significantly more than the annual deduction limit.
Starting in 2026, if your qualified educator expenses exceed the $350 limit, the excess amount may be deductible as an itemized deduction on Schedule A.
However, there is an important catch:
- You must itemize your deductions to receive a tax benefit for expenses above the $350 limit.
- Taxpayers who take the standard deduction generally will not receive an additional benefit for educator expenses that exceed the annual limit.
Because of this, keeping detailed records remains important even if your expenses exceed the standard educator deduction.
Planning Tip for Educators
If you’re a teacher or coach who regularly purchases supplies, equipment, or materials for your students, start tracking those expenses now. Good recordkeeping can help ensure you receive every deduction you’re entitled to when it’s time to file your tax return.
Need Help?
Tax laws continue to change, and understanding which deductions apply to your situation can be confusing. If you have questions about educator expenses, itemized deductions, or tax planning strategies, we’re here to help.
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