New TUTOR Act Offers Teachers Up to $1,000 Tax Credit for Academic Tutoring Starting in 2026

The newly introduced Teachers Utilizing Tutoring Opportunities for Relief Act, or the TUTOR Act, is setting up a direct financial incentive for teachers to spend more time helping students outside of the classroom. Starting with the 2026 tax year, eligible teachers can claim a federal tax credit worth up to $1,000 for providing academic tutoring in critical subjects like math, reading/writing, and science.

The Side Hustle That Pays Off (and Helps Kids)

This isn't just a small deduction; it’s a tax credit, which means it reduces your tax bill dollar-for-dollar. The credit works in two parts. First, an eligible teacher—meaning someone with a current state license working in preschool, elementary, or secondary school—gets a base credit of $500. To qualify for even the base amount, they must provide a minimum of 150 hours of qualified tutoring during the year. This tutoring has to be outside of school hours and focus on students at the same grade level as the teacher’s primary job.

Hitting the Bonus Hours

If a teacher goes above and beyond the required 150 hours, they can earn a supplemental credit. For every 50 hours of tutoring past the initial 150, they earn more, proportional to another $500. However, the total supplemental amount is capped at $500, making the absolute maximum credit a teacher can claim $1,000 ($500 base + $500 supplemental). Think of it like this: if you’re a high school math teacher already juggling a heavy workload, spending an extra 150 hours tutoring students after school or on weekends gets you $500 back from the IRS. If you hit 250 hours, you max out the credit at $1,000.

Real-World Impact: More Support, Less Jargon

For parents and students, this bill could mean a much-needed boost in available, high-quality academic support. By incentivizing licensed, certified teachers—the experts—to tutor, the bill aims to close learning gaps in core subjects without requiring parents to pay high private tutoring fees. For teachers, this provides a tangible reward for the extra time and effort they already put in. It recognizes that while many teachers already tutor, this credit makes that extra work financially worthwhile, especially when costs of living keep climbing.

The Fine Print and the Clock

There are a couple of important things to note. First, if you’re married and filing jointly, each spouse who is an eligible teacher can claim the credit separately, provided they meet the 150-hour minimum. Second, this credit is temporary. It’s set to expire for tax years beginning after December 31, 2032. This means teachers can rely on this incentive for about seven years, but the program will sunset unless Congress extends it. The Treasury Department is also required to send an annual report to Congress detailing exactly how many teachers claim the credit and how many hours they provide, which is a smart mechanism for tracking whether this incentive is actually working to increase supplemental instruction.