Beginning in 2026 tax year, the One Big Beautiful Bill Act changes how K-12 educators deduct unreimbursed classroom costs. The law removes the $300 annual cap but moves the deduction to Schedule A, which means it will only benefit taxpayers who itemize. 

According to a report by CPA Practice Advisor, through 2025, eligible educators may deduct up to $300 of qualified expenses even if they do not itemize. Qualifying positions include teachers, instructors, counselors, principals, and classroom aides who work at least 900 hours during the year with K-12 students. The deduction does not apply to preschool or day care teachers, camp counselors, college faculty, self-employed tutors, or parents who homeschool.

Typical qualifying expenses include books and classroom supplies, computer equipment and software, athletic equipment for physical education, and professional development that relates to the curriculum. With reimbursed amounts not being deductible. 

The shift in 2026 coincides withe the OBBBA’s permanent elimination of miscellaneous itemized deductions that priorate the Tax Cuts and Jobs Act, were allowed to the extent they exceeded 2 percent of adjusted gross income. Those deductions were scheduled in 2026 but will not under the new law. 

Because the educator deduction will be uncapped yet limited to itemizers, the benefit will vary with each household’s filing profile. An educator who spends $1,000 out of pocket and itemizes in 2026 could deduct the full amount; an educator who takes the standard deduction would receive no benefit for the same spending. For the 2025 return, the $300 above-the-line deduction remains available (up to $600 on a joint return if both spouses qualify).