Do you deduct classroom expenses on your tax return?

Did you know that in 2024, teachers spent an average of $864 of their own money to support their classes? As we look ahead to filing 2025 tax returns in early 2026, I want to outline a tax law change that will affect teachers. Unfortunately for most teachers, this will likely reduce or eliminate the tax deduction for classroom expenses.

Let's start with the status quo: as the law stands now, qualifying educators (not just teachers) can deduct up to $300 of qualifying classroom expenses. This deduction is available to qualifying educators regardless of whether they itemize deductions or take the standard deduction (great news since as of 2020, only 9% of filers itemized). One important caveat is that you cannot deduct expenses if you have been reimbursed for them; that said, I've found the definition of a qualified expense to be fairly broad, including: computers/software, COVID-19 prevention, and even professional development courses.

However, starting in 2026, the $300 cap will be removed and teachers can deduct the full amount of their qualified expenses. The catch is this; the deduction is only included for taxpayers who itemize deductions on their returns. Given that the vast majority of filers claim the standard deduction each year, it seems likely that most teachers will lose the $300 deduction that they have been claiming.

The silver lining is that we can use the advanced notice of the new 2026 rule as an opportunity for strategic tax planning, if qualifying educators can control the timing of some of their expenses. I'll use an example in which I myself am a qualifying educator:

Firstly, any qualifying educator should continue to take advantage of the $300 deduction in 2025, regardless of taking an itemized or standard deduction since it is available to all qualifying educators in 2025. If I was not going to use the entirety of the $300 deduction in 2025 but would have later expenses that would qualify, I would do my best to accelerate those expenses into the end of 2025 to take full advantage of the $300 deduction before it goes away, assuming I claim the standard deduction most years.

Then, in the future, those on the threshold between itemizing and taking the standard deduction can make use of the fact that the OBBBA has incentivized bunching of expenses. For example, it may make sense to take the standard deduction for a few years and save up to make large bulk purchases for the classroom in one specific year so that you can itemize and get the full value of the deduction.

Sadly, even effective tax planning only offers a lukewarm solution to an issue that was already effectively managed (if not arguably underfunded) in the current tax code. This law change in particular feels frustrating to me because it feels like the law is punishing the teachers who are sacrificing the most. Teachers aren't casually paying out of pocket for things that they think their classrooms could go without for a few years; in many cases, delaying expenses to bunch them into one year is not a practical answer.

Although this change will be unfavorable to some educators, the right advisor can work with you to maximize the deductions available. It's important to consult the IRS guidelines or a tax professional to ensure you are a qualified educator and that your expenses are qualified as well.