US Teachers Spent $3.24 Billion of Their Own Money on Classroom Expenses in 2023

Tax season has passed, and for most workers, that meant tallying up all of those job-related expenses to lower their taxable income as much as possible. While these deductions can really add up for workers in many professions, that’s unfortunately not really the case for teachers.

Despite the rising costs of educational materials, the educator expense deduction is capped at just $300 for the 2023 tax year. This figure, while recently increased to this amount last year, has only very slightly budged since its introduction in 2002 when it was a $250 allowance, failing to keep pace with inflation or the actual expenses incurred by educators.

If the educator expense deduction had kept up with inflation since it started in 2002, teachers would be able to knock off more than $428 from their taxable income for classroom expenses.

Sadly, that’s not what’s happening. And even if it was, that amount still wouldn’t come close to covering the real costs teachers shell out to make their classrooms ready and welcoming for their students.

Our latest research reveals that the average teacher spent $853.90 out of pocket on school supplies in 2023, setting a new record for the highest amount ever reported. This is a significant increase from last year and underscores the growing financial burden shouldered by educators.

The discrepancy between the allowable tax deduction and actual spending means that teachers are spending nearly 2.8 times more on classroom supplies than they can deduct.

Collectively, teachers in the United States spent an estimated $3.24 billion on essential classroom items in 2023, like pencils, paper, cleaning supplies, books, software, and other materials.

Here’s a breakdown of the estimated total teacher spending by state in 2023:

The financial strain of out-of-pocket expenses, coupled with salaries that also haven’t kept pace with inflation, is just one more reason so many teachers say they feel undervalued and overburdened, with a significant number considering leaving the profession due to financial pressures and a lack of support.

I have spent as much as $3000 for my classroom – anything from pencils, pens, paper, notebooks, markers, scissors, glue sticks, and binders, and sheet protectors to text books, readers, curriculum materials, and auxiliary material for my students

— Rachel Graczak (@Swimndance08) April 4, 2023

No one talking about how much of their own money teachers are spending on teaching virtually, in-person or hybrid.

Pre-pandemic, teachers spent (on average) well over $500 on school related supplies.

Last year and this year? I am well over $1,500 and I teach high school.

— Nicholas Ferroni (@NicholasFerroni) April 24, 2021

The biggest problem is that this is a deduction and not a credit!

A deduction means that you lower your taxable income by $300, so likely saving $36-$66 on your taxes.

A tax credit would be a full refund of the money you spent on your classroom (which should be paid for!!!)

— David Gourley, M.Ed, CSLP® (@DavidG_CSLP) January 24, 2023