The One Big Beautiful Bill – The Act – introduced several tax-saving opportunities for 2025 and beyond. To gain the most benefit from a few of them requires action now!
EDUCATOR EXPENSES
This is a new deduction for 2026. Start keeping track of your teaching-related expenses right away. You don't have to itemize to receive a $300-600 deduction on your taxes.
WHO: Kindergarten-12th-grade teachers, instructors, counselors, principals, coaches, and aides who work at least 900 hours per year.
WHAT: Unreimbursed classroom expenses such as books, supplies, equipment, technology, professional development fees, supplementary materials, software, etc.
NON-U.S. DONATIONS AND PAYMENTS
This isn't a tax savings. If you contribute or pay for goods internationally, you may be subject to a new 1% excise tax. However, it only applies if you use cash, money order, or a cashier's check, or through non-U.S. payment apps. Use an exempt method to avoid the tax.
EXEMPT METHOD: The transfer is from a U.S. financial institution or a U.S.-issued debit or credit card.
The North Alabama United Methodist Foundation does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only.
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