2026 Charitable Deductions

Earlier today Dick Quinn published a useful reminder that the time to think about doing qualified charitable deductions (QCD) is now.  We’ve also been looking at our annual charitable contributions.  We are not quite old enough to use QCDs, but there are a few changes in the 2026 tax code that will impact our charitable donations.

Starting in the 2026 tax year, non-itemizers (those who take the standard deduction) will be able to deduct some of their charitable donations made to eligible charitable organizations.  Single taxpayers can deduct up to $1,000 for cash donations. Married couples filing jointly can deduct $2,000 for cash donations.

The draft IRS Tax Form 1040 shows the new charitable deduction will be included on line 12f, just after you choose whether to use the standard deduction or an itemized deduction. This is a “below the line” deduction, so it does not impact your AGI.

There are some important rules to follow to be eligible for the non-itemizer deduction

• The deduction limit is up to $1,000 for single filers; up to $2,000 for married couples filing jointly.
• Only cash donations (cash, check, or credit card) qualify. Non-cash gifts (like clothing, property, or stocks) are not eligible.
• Contributions to donor-advised funds (DAFs), private foundations, or most supporting organizations do not qualify.
• Any unused portion of the $1,000 limit cannot be carried over to future tax years.
• You should keep bank records or written receipts showing the date, amount, and the charity’s name.

There are some other changes to the 2026 IRS Charitable Giving Rules.

• If you choose to itemize your deductions instead of taking the standard deduction, you can only deduct charitable contributions that exceed 0.5% of your adjusted gross income (AGI).
• Taxpayers in the top 37% federal income tax bracket face a cap that limits the value of itemized charitable deductions to 35%.

This brings up an interesting question.  Can a taxpayer who itemizes, but does not meet the 0.5% minimum threshold referenced above, still take the $1,000 non-itemizer deduction?  My research indicates that you can’t.  If you choose to itemize your deductions instead of taking the standard deduction, you can only deduct those charitable contributions that are above the 0.5% AGI limit.

If your itemized total is less than the standard deduction plus the new non-itemizer charitable deduction, take the standard deduction.