In 2022, when the Internal Revenue Service raised the educator expense deduction for the first time since its inception in 2002—from $250 to $300—it felt to some like a slap in the face.
“The amount is just so small, it’s a joke,” Pauline Stavrou, a tax attorney for Frost Tax Law in Baltimore, told Education Week at the time.
Four years later, the deduction cap remains the same. But with inflation, what you could purchase for $300 in 2022 requires about $335 in today’s dollars. When evaluated that way, the amount of out-of-pocket expenses that teachers can deduct annually has actually decreased since 2022.
And yet teachers continue dipping into their personal bank accounts to buy things for their students, from classroom supplies to snacks. K-12 teachers anticipated spending up to $600 of their own money on their students’ needs during the 2025-26 school year, according to a survey of 705 American Federation of Teachers members released in September 2025.
Tax time may not reward teachers with big monetary paybacks. But specific strategies—some that require diligence throughout the year, and others that come into play while preparing taxes—can help teachers keep as much of their earnings in their pockets as possible. Keep reading to learn how.
Determine if you qualify for the educator expense deduction
Not sure if you qualify for the educator expense deduction? According to the IRS, you are eligible if you are a K-12 teacher, instructor, counselor, principal, or aide working at least 900 hours per school year in an elementary or secondary school as determined under state law.
Take the educator expense deduction
Most educators incur out-of-pocket costs for classroom purposes that are not reimbursed. It may not seem like much, but it’s worth taking the deduction of up to $300, said Misty Erickson, a tax content program manager with the National Association of Tax Professionals. Looking ahead, in 2026 the educator expense deduction will increase to $350.
The deduction lowers the amount of income on which you’re taxed.
Be aware of these education-related credits and deductions—you may be eligible
The lifetime learning credit, worth up to $2,000, applies to qualified tuition and related expenses. It applies toward eligible undergraduate, graduate, and professional degree courses, including those to acquire or improve job skills. Find out if courses you took or plan to take qualify here.
Making payments on student loans? You may be able to deduct the interest you paid, Erickson said. The IRS explains in detail the circumstances that allow taxpayers to take advantage of the student loan interest deduction.
Thinking about a second income stream? Read this first
Many teachers feel the need to pick up extra work to make ends meet. Before you take on a part-time job or side hustle, know that it could come with tax implications. If that additional income pushes you to a higher tax bracket, the extra income you bring home may not be worth it. Find out what your tax bracket is here.
And if you do take a part-time job, make sure you withhold enough taxes on your W-4 form; otherwise, you may be liable for unexpected tax consequences when you file, Erickson cautions.
Hang on to your receipts and other tax-related documents
Keep track of your education-related, out-of-pocket expenses by saving receipts together in a safe place. You’ll need to show proof of them when filing your taxes. The same goes for pay stubs from part-time employment, Erickson said.
Prepare to start tracking individual charitable donations again
In 2017, the standard deduction doubled as part of the 2017 Tax Cuts and Jobs Act, leaving many middle-income consumers to use the standard deduction over itemized deductions.
But when filing a 2026 tax return, explains Erickson, a nonitemizer (someone who claims the standard deduction) will be able to claim a deduction for charitable contributions of up to $1,000 if they file as “single,” and $2,000 if they file as “married filing jointly.” Qualified charitable contributions will include cash contributions to churches, nonprofit educational institutions, nonprofit medical institutions, or other public charities.
File on time!
Failing to file personal taxes on time may subject you to penalties and interest. The deadline to file is April 15, 2026.
