We have followed this one for a while. In May we wrote about the SEED Act passing the House. In August we covered its passage in the Senate and explained that it still had to go back to the House. It did. The Supporting Early-Childhood Educators' Deductions Act was signed into law on September 18, 2026, as part of the Sanctioning Russia and Iran Act.
After more than twenty years of the deduction stopping at the kindergarten door, it no longer does.
What changed
Since 2002, K-12 teachers have been able to take an "above-the-line" deduction for classroom supplies they pay for themselves. It is currently up to $350. "Above the line" matters: you can claim it whether or not you itemize, and most early educators don't itemize.
The SEED Act extends that same deduction to pre-K and early childhood educators. The people who teach three- and four-year-olds, and who buy the same crayons, books and learning materials as anyone else, now get the same treatment in the tax code.
When you can use it
This is the part that matters for your planning.
The deduction applies to expenses paid or incurred in 2026. You will claim it on your 2026 tax return, filed in early 2027.
Because the law was signed in September and covers the whole of 2026, what you have already spent this year can count. Supplies you bought in February for a spring theme or in August to set up a new room may qualify, provided you weren't reimbursed for them.
What to do now
- Find this year's receipts. Look through email order confirmations, store receipts and bank or card statements for classroom purchases since January.
- Start a folder for the rest of the year. One envelope or one digital folder makes April much easier.
- Keep reimbursed purchases separate. Anything your program paid you back for doesn't count.
- Check the eligibility details before you file. The exact definitions of who qualifies as an early childhood educator, and in which settings, will come through IRS guidance and your tax preparer. Keep the receipts now and confirm before you claim.
Why it's more than $350
We said in August that a $350 deduction wasn't going to fix early childhood pay, and that is still true. Early educators remain among the lowest-paid workers in the country relative to their credentials, and that shortage is behind the thin supply and program closures families keep running into.
What the law does settle is the principle we argued for during Teacher Appreciation Week: the people who teach before kindergarten are teachers. Federal tax law now says so, with bipartisan support in both chambers.
One more deadline today
Separately, if you were planning to comment on the proposed Head Start rule, the comment period closes at midnight Eastern tonight. Our step-by-step guide to filing a comment takes about fifteen minutes to follow.
