Educators Expense Deduction Modernization Act of 2025
Educators Expense Deduction Modernization Act of 2025
Plain Language Summary
# Summary: Educators Expense Deduction Modernization Act of 2025 **What It Does:** This bill would increase the tax deduction that teachers and school staff can claim for out-of-pocket classroom expenses. Currently, K-12 educators can deduct up to $300 per year for supplies and professional development courses they pay for themselves. The bill would raise this limit to $1,000 starting in 2026, with the amount adjusted for inflation in future years. **Who It Affects:** The bill targets K-12 teachers, counselors, principals, and aides who spend their own money on classroom materials and professional training.
To qualify, educators must work at least 900 hours during a school year at a public or private K-12 school. This benefit helps offset costs that schools don't cover, such as classroom decorations, technology, books, or training courses. **Current Status:** The bill (HR 1054) was introduced by Representative Sean Casten (D-Illinois) and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives.
CRS Official Summary
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.
Latest Action
Referred to the House Committee on Ways and Means.