Charitable Donations --
The One Big Beautiful Bill Act ( OBBB ) changed/updated the methods in which taxpayers can deduct charitable gifts for the 2026 tax year.
1. Taxpayers taking the standard deduction - can now claim a deduction for charitable contributions $1,000 for single filers and $2,000 for married couples filing jointly. There are limitations -- the deduction only applies to cash donations made directly to certain qualified charitable organizations, such as 501(c)(3) charities. It does not apply to non-cash donations (property), contributions to supporting organizations, donor-advised funds or most private foundations.
2. Taxpayers who chose to itemize their deductions will see changes to the "math" or limitations to the charitable contributions. Under the new OBBB provisions, only charitable contributions that exceed 0.5% (or 1/2 percent) of your adjusted gross income (AGI) will be deductible. Any donations below this floor will not count as a deduction.
3. High earners are subject to a new deductible cap. Taxpayers in the highest federal tax bracket (37%) now face a cap on charitable deductions. For those in the 37% federal bracket, the tax savings you get from each dollar of itemized deductions (including charitable gifts) is generally capped at 35 cents per on the dollar.
2. Taxpayers who chose to itemize their deductions will see changes to the "math" or limitations to the charitable contributions. Under the new OBBB provisions, only charitable contributions that exceed 0.5% (or 1/2 percent) of your adjusted gross income (AGI) will be deductible. Any donations below this floor will not count as a deduction.
3. High earners are subject to a new deductible cap. Taxpayers in the highest federal tax bracket (37%) now face a cap on charitable deductions. For those in the 37% federal bracket, the tax savings you get from each dollar of itemized deductions (including charitable gifts) is generally capped at 35 cents per on the dollar.
