New 2026 Educator Tax Law

It’s Teacher Appreciation Week (May 4-8)

Congress showed appreciation with tax benefits for educators.

Some educators are unaware about the educator tax deduction. This deduction is Federal only as California doesn’t allow this law.

 For 2026, an eligible educator can deduct up to $350 of qualifying expenses even if they claim the standard deduction. If you are married and file a joint return with another eligible educator, the limit rises to $700 in total (up to $350 per spouse).

 Educators don’t have to itemize deductions to claim this tax deduction. If you claim the standard deduction you are eligible for this deduction. There is no income limit. 

Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during a school year. Both public and private school educators qualify.

Note: There is a proposal to expand this law to help preschool educators as well..

NEW 2026 LAW

Beginning in 2026, the One Big Beautiful Bill Act provides a new itemized deduction for elementary and secondary school teachers (K-12) to complement the longstanding $350 above-the-line deduction for classroom expenses.

THIS LAW DOES NOT IMPACT EDUCATORS WHO CLAIM THE STANDARD DEDUCTION

There are three key differences between the above-the-line deduction and the new itemized deduction:

(1) there is no limit on the amount of the itemized deduction;

(2) in any given tax year, you'll only get a tax benefit if you itemize your deductions instead of taking the standard deduction; and

(3) educator expenses of interscholastic sports administrators and coaches are allowed, and "nonathletic supplies for courses of instruction in health or physical education" are allowed as eligible expenses.

There is no law that says you can’t take both the $350 educator deduction and itemized deduction in the same year. As long as you don’t double-count expenses by using it for both deductions, you can take advantage of both laws.