Tax Tips: 2026 Changes in Charitable Contributions

Starting in tax year 2026, the One Big Beautiful Bill Act introduces a significant tax benefit: taxpayers can now deduct up to $1,000 for single filers and $2,000 for married couples filing jointly in charitable contributions, even if they take the standard deduction.

Key Information:

• $1,000 deduction for single filers and $2,000 for married couples filing jointly.
• Available regardless of whether you itemize your deductions.

Qualified Charitable Contributions:

Donations must be made to qualified charitable organizations (501(c)(3) nonprofits). This includes most charitable groups, religious organizations, educational institutions, and certain foundations. You can verify whether an organization qualifies by using the IRS Tax Exempt Organization Search tool.

Record Keeping:

Although the new deduction does not require itemization, you must keep documentation of your donations. This includes:

• Receipts or bank records.
• The name of the charity.
• The date and amount of the donation.

Final Thoughts:

This change offers an opportunity for many taxpayers to benefit from charitable giving without needing to itemize. By taking advantage of this new deduction, you can lower your taxable income while supporting causes you care about. Just remember to keep thorough records and stay within the annual limits to maximize your tax savings in 2026.

If you would like to learn more or to set up a consultation, call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730.

The above information is of a general nature only and should not be relied upon for specific situations.