SEED Act Expands Teacher Tax Deduction to Early Childhood Educators Starting 2025

The Supporting Early-childhood Educators Deductions Act of 2025, or the SEED Act, is making a necessary update to the tax code. Simply put, this bill expands the existing federal tax deduction for educator expenses to include early childhood educators—a group that has historically been left out.

The Deduction Explained

Currently, K-12 teachers can claim an “above-the-line” deduction for up to $300 (as of 2024) of unreimbursed classroom expenses. “Above-the-line” is key here: it means you don't have to itemize your deductions to claim it. You just subtract the amount directly from your gross income, lowering your overall taxable income. This deduction helps offset the cost of supplies, books, and materials teachers often pay for out of pocket.

Leveling the Playing Field for Preschool Teachers

Section 2 of the SEED Act updates Section 62 of the Internal Revenue Code to explicitly include “early childhood educator” in the definition of who qualifies for this deduction. It also updates the type of education covered to include “early childhood education.” This is a direct acknowledgment that preschool and pre-K teachers are educators, too, and they face the same reality of shelling out their own cash for classroom supplies.

Think about the typical early childhood educator: they’re buying everything from craft supplies and educational toys to cleaning wipes and snacks. While the deduction limit is modest, it’s a form of financial relief and recognition for a workforce that often operates on tight budgets and lower wages than their K-12 counterparts. For a teacher making $35,000 a year, that $300 deduction might translate into $30 to $60 back in their pocket, depending on their tax bracket—money that can go right back into their household budget.

When Does This Kick In?

This change isn't retroactive. If you’re an early childhood educator, you won't be able to claim expenses you paid in 2024. The bill specifies that this expansion applies to expenses paid in tax years beginning after December 31, 2024. This means the earliest you’ll see this reflected on your tax return is when you file your 2025 taxes in early 2026. This gives the IRS and tax software developers plenty of time to update their forms and systems to reflect the new eligibility.