Early educators can now take advantage of a tax break that was previously available only to K-12 teachers, allowing them to claim a $350 federal tax deduction for classroom materials they buy out-of-pocket during the schoolyear.
The new provision, known as the Supporting Early-Childhood Educators’ Deductions (SEED) Act, was part of broader federal legislation that passed with bipartisan support and was signed into law on Sept. 18 by President Donald Trump.
Early educators across the U.S. can claim the tax break this tax season for all out-of-pocket classroom expenses incurred after Dec. 31, 2025. The provision includes the majority of both home and center-based providers. Any early educator who is paid to take care of two or more kids is eligible.
Experts called it a "symbolic" win more than a policy that would put significant dollars back in educators' pockets given its relatively modest amount for the over 90% of Michigan early educators research shows pay for items – diapers, books, craft materials and clothing – for kids in their classrooms with their own cash.
"It's an opportunity for (early educators) to be seen as equivalent to their K-12 peers," said Aaron Sojourner, senior economist and researcher at the W. E. Upjohn Institute for Employment Research in Kalamazoo.
"Often times they have the same credentials and degrees but are just working with a different age group ... I think the bigger part is about the feeling of disrespect and lack of recognition in the field for people working with kids prior to them arriving at those Kindergarten doors,"
'Big hearts' rack up dollars spent on kids in Michigan
Scherriel Latrice Fenderson has run a childcare site out of her Detroit home for the last 25 years and sees what her teachers buy for the kids in their classrooms. Books, if they see a sale on "Brown Bear, Brown Bear, What Do You See?" – a staff-wide favorite. Winter shoes, coats and hats when it's getting cold and they notice a child doesn't have gear.
She estimates her teachers spend up to $200 a month on their kids.
"Teachers hearts are big, it's gonna happen," Fenderson said.
She said she thinks this happens even more with early educators than K-12 teachers since curriculum for birth to 5-year-olds is play-based and often adjusts to what kids are interested in.
Early educators spend on their kids on an already tight budget given their average hourly pay in Michigan is between $13.88 and $17.65 depending on the classroom age group. (Pre-K teachers often get paid higher wages.)
In early 2026, a small survey done by the Childcare Providers Association of Michigan found 90% of providers who responded spent money on safety and upgrades, food or snacks and classroom and educational supplies, 77% said they paid for clothing, shoes or winter gear for kids and 64% said they paid for wipes, formula and diapers.
U.S. Senator Michael Bennet, a Democrat from Colorado who introduced the SEED Act, didn't respond to questions about whether the definition of classroom supplies will be expanded to include things early educators often spend on, though the current definition is broad and includes any "supplementary materials" eligible educators use in the classroom.
Beki San Martin is a fellow at the Detroit Free Press who covers childcare, early childhood education and other issues that affect the lives of children ages 5 and under and their families in metro Detroit and across Michigan. Contact her at rsanmartin@freepress.com.
This fellowship was founded with support from the Bainum Family Foundation. The Free Press retains editorial control of this work.
This article originally appeared on Detroit Free Press: Early educators can now claim tax break once reserved for K-12 teachers
