Beginning January 1, 2026, an important federal tax law change took effect that may impact your charitable giving strategy. A new universal charitable deduction now allows certain taxpayers to receive a federal tax benefit for charitable contributions even if they do not itemize deductions. The deduction applies only to donations made on or after January 1, 2026. Contributions made in 2025 remain subject to current law. Following are some key highlights:
Benefit for Non-Itemizers
If you claim the standard deduction, you may deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for qualifying charitable contributions. Taxpayers who itemize deductions are not eligible for this specific benefit.
Eligible Contributions
The deduction applies only to cash contributions, including gifts made by cash, check, credit card, or electronic transfer directly to a qualified charitable organization. Contributions made through Donor Advised Funds (DAFs) or Qualified Charitable Distributions (QCDs) do not qualify for this deduction.
Permanent Provision
Unlike prior temporary charitable deductions, this change is a permanent feature of the tax code beginning in 2026.
Why Are We Sharing This Information?
While charitable giving is often motivated by personal values and philanthropic goals, understanding the tax treatment can help you plan more effectively. Tax law changes can affect how and when charitable gifts are made.
We encourage you to consult with your tax professional and your advisory team to determine how this provision may fit into your overall financial and tax strategy.
If you would like to discuss how this change may affect your personal situation, please reach out to our team.