Increased Tax Deduction for Teachers

Educators Expense Deduction Modernization Act of 2025This bill increases the above-the-line tax deduction for unreimbursed expenses incurred by an eligible educator for classroom supplies and certain professional development courses. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.) Under current law, an eligible educator may deduct up to $300 in 2025 (adjusted annually for inflation) for unreimbursed expenses for classroom supplies and certain professional development courses. An eligible educator is defined as a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who works at least 900 hours during a school year in a school that provides elementary or secondary education. Under the bill, an eligible educator may deduct up to $1,000 in 2026 for unreimbursed expenses for classroom supplies and certain professional development. For tax years after 2026, the $1,000 limit on the tax deduction is adjusted annually for inflation.

1. This bill raises the tax deduction for teachers' expenses from $250 to $1,000. 2. It allows eligible educators to deduct more money for classroom supplies and materials. 3. The changes will apply starting with the 2026 tax year. 4. The bill aims to support teachers who often spend their own money on school needs. 5. It updates the tax code to reflect current education costs.