Transitional kindergarten and preschool teachers in Santa Clara County can now claim a federal tax deduction for their out-of-pocket classroom supplies under a newly signed law, as San José Spotlight reported.
The Supporting Early-Childhood Educators’ Deductions (SEED) Act expands an existing federal tax deduction previously limited to K-12 educators. Authored by Silicon Valley Congressman Jimmy Panetta, the federal tax bill will allow early childhood educators to receive up to $350 in tax deductions starting next year to help cover classroom materials and supplies.
On average, educators spend about $895 out of pocket every year on classroom resources. Panetta met with transitional kindergarten teachers at Santa Teresa Elementary School in the Oak Grove School District on Oct. 26 to discuss the new tax reimbursement while visiting local classrooms.
Panetta explained that hearing K-12 teachers describe how the previous deduction helped them led him to author the bipartisan SEED Act for early childhood staff. He noted that pre-K educators lacked this financial relief despite performing crucial work. He described the federal measure as a way to thank teachers and offer partial financial help, noting the write-off covers about one-third of what educators typically spend.
The federal legislation aligns with California's state education initiatives. In 2021, Gov. Gavin Newsom signed Assembly Bill 130, a state education package that created universal pre-kindergarten for all four-year-old children. The transitional kindergarten program rolled out incrementally beginning in the 2022-23 academic year, reaching full implementation by 2025-26. However, educators in those transitional kindergarten positions previously could not deduct any of their personal classroom expenses.
Santa Teresa Elementary School Principal Kristi Frankina told San José Spotlight that local educators dedicate significant time, energy, and personal money to their students, adding that the federal reimbursement validates their hard work and returns needed dollars to their pockets.
Jennifer Anderson, a transitional kindergarten teacher at the school, told San José Spotlight that she spends over $1,000 annually on her classroom. While the district and the local Home and School Club offer some financial backing, Anderson noted that covering costs creates a financial hardship for teachers given the high living costs in San Jose. She added that public preschool provides critical preparation for children entering kindergarten by teaching basic skills like writing names, holding scissors, problem-solving, and listening, while giving families who cannot afford private options access to early education.
Julie Rau, another transitional kindergarten teacher, told San José Spotlight that she spent $3,000 a year on supplies when she started teaching the grade level, though she has kept expenses to $300 so far this year. She pointed out that academic expectations for kindergarten have risen, making transitional kindergarten an essential bridge for early skill development.
Demand for early learning options has led to localized expansion across public school campuses. Patricia Mondragon-Doty, the director of curriculum, instruction, and assessment for the Oak Grove School District, told San José Spotlight that enrollment increases prompted the district to offer full-day programs for working families. Sites that previously held a single transitional kindergarten classroom now host two or three, including three active classrooms at Santa Teresa Elementary School.
