Educator Expense Deduction for Teachers

Many teachers buy classroom supplies with their own money. The federal tax code has a deduction for some of those costs. It is called the educator expense deduction. For most eligible teachers, the limit is $300 a year. IRS: Topic no. 458, Educator expense deduction

Who counts as an eligible educator

You are an eligible educator if, for the tax year, you were a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide. You must have worked at least 900 hours during a school year. The school must provide elementary or secondary education under the rules of your state. IRS: Topic no. 458

How much you can deduct

The limit is $300 of unreimbursed expenses. If you file a joint return and both spouses are eligible educators, the limit is $600. Even then, neither spouse can claim more than $300. IRS: Topic no. 458

Expenses that count

Qualified expenses include amounts you paid or incurred for:

professional development courses
books
supplies
computer equipment, including related software and services
other equipment
supplementary materials that you use in the classroom

For health or physical education courses, the supplies must be athletic supplies. Personal protective equipment, disinfectant, and other supplies used to prevent the spread of coronavirus also count. IRS: Topic no. 458

Amounts that reduce the deduction

Some expenses are paid with money that is already tax free. Those amounts do not count. Your qualified expenses are deductible only to the extent they are more than the following:

tax-free interest on U.S. series EE or I savings bonds used for qualified higher education expenses
tax-free distributions from a qualified state tuition program
tax-free withdrawals from a Coverdell education savings account
reimbursements you received for expenses that are not reported in box 1 of your Form W-2

Check your records before you add up your costs. IRS: Topic no. 458

Illustration only, with made-up numbers. Mr. and Mrs. Kim are both eligible teachers and file jointly. He spends $350 on classroom supplies, and she spends $200. He can deduct $300, his cap. She can deduct $200, which is under her cap. Their joint total is $500.

Illustration only, with made-up numbers. Ms. Lee teaches fourth grade. She spends $450 on classroom books and supplies. Her school does not pay her back. She can deduct $300, the annual limit. The other $150 is not deducted.

Where to report it

You claim the deduction on Form 1040, Form 1040-SR, or Form 1040-NR. Attach Schedule 1 (Form 1040). IRS: Topic no. 458

Common mistakes

Some teachers claim costs the school already paid for. Others forget that the limit applies to the whole tax year, not to each purchase. The rule covers items used in the classroom. If an item is for another purpose, check the IRS topic page before you claim it. When both spouses are educators, track each spouse's expenses separately, because each spouse has a separate $300 cap. A cost paid with a school reimbursement cannot be deducted again.

Records to keep

Keep receipts, bank or card statements, and proof that the school did not reimburse the cost. A letter or pay record that shows your hours and job title can also help. If the school did not reimburse you, ask for a short letter that says so. Keep one file for the year so the total is easy to add up at tax time.

Steps to take

Confirm that your job and your hours meet the rules for an eligible educator.
Add up the unreimbursed costs that fit the qualified expense list.
Subtract any tax-free amounts listed above.
Apply the limit: $300 for most filers, or $600 for a joint return where both spouses qualify, with no more than $300 each.
Report the deduction on Schedule 1 (Form 1040). Check the line numbers in the form instructions before you enter the amount.

General information, not advice about your return.

Sources: Sources: IRS, Topic no. 458, Educator expense deduction (https://www.irs.gov/taxtopics/tc458) This is general information, not advice about your specific return.

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