New Federal Law Expands Tax Deduction to Early Childhood Educators
Early childhood educators play an essential role in supporting young children's learning and development, yet many regularly purchase classroom materials with their own money. A new federal law will help ease some of that financial burden.
On September 18, 2026, the Congressional bipartisan Supporting Early-Childhood Educators' Deductions (SEED) Act was signed into law, extending the federal educator expense tax deduction to eligible pre-K teachers and early childhood educators for the first time. Previously, this benefit was available only to eligible K–12 educators. By expanding eligibility to educators working in qualifying child care facilities serving young children, this law recognizes the important role early childhood educators play across different early learning settings.
According to the First Five Years Fund, more than 90% of early childhood educators report purchasing classroom materials out of pocket, spending an average of $860 annually on supplies for the children in their care.
What Does the SEED Act Mean for Early Childhood Educators?
Beginning with qualifying expenses incurred during the 2026 tax year, eligible early childhood educators can claim a federal tax deduction of up to $350 for unreimbursed educational expenses, including:
Classroom supplies, books, and learning materials.
Educational equipment, computers, and software used in the classroom.
Eligible professional development courses and training.
The deduction is available regardless of whether an educator itemizes deductions or takes the standard deduction. To benefit, educators should keep receipts and records of qualifying purchases and turn them in with their taxes when they file in 2027.
Why This Matters for Ohio
Ohio's early childhood educators are essential to the state's workforce and economy. They support children's development while making it possible for parents to work, pursue education, and support their families. Yet, many educators face financial challenges of their own.
According to 2025 Bureau of Labor Statistics data, the average child care annual salary in 2024 was $28,230 for full-time work. For educators already earning modest wages, purchasing classroom supplies out-of-pocket creates an additional financial burden.
While the SEED Act does not address the broader challenges of low wages and workforce shortages in early childhood education, it represents a meaningful step toward recognizing early childhood educators alongside their K–12 counterparts.
Learn more: First Five Years Fund: SEED Act Passes Into Law
