Both itemizers and non-itemizers can now benefit.
Itemizers
Itemized Deductions
Your total deductions (including charitable gifts, mortgage interest, and state/local taxes) must exceed the standard deduction.
Cash Donation Limits
Cash donations to public charities are generally deductible up to 60% of your Adjusted Gross Income (AGI).
Appreciated Assets
Donating long-term appreciated assets (such as stocks held over one year) allows you to deduct the fair market value (up to 30% of AGI) while avoiding capital gains tax.
New “Floor” for Itemizers
Beginning in 2026, a minimum threshold (or “floor”) may apply before charitable deductions provide a tax benefit. This change, introduced under recent legislation, means some lower levels of giving may not yield the same tax savings as before, making strategic donation planning more important.
Non-Itemizers
Qualified Charitable Distribution (QCD)
If you’re age 70½ or older, you can transfer up to $108,000 (indexed for inflation) directly from your IRA to a qualified charity. This amount is excluded from taxable income and can be especially valuable if you do not itemize.
New Deduction for Non-Itemizers (Now in Effect for 2026)
Non-itemizers can claim a charitable deduction of up to $1,000 (single filers) or $2,000 (married filing jointly) for cash donations to qualified charities. Check IRS websites for qualified charity definitions and lists.
Timing, donation type, and filing status all play a role in maximizing your benefit. Charitable giving remains a powerful tax strategy in 2026, but the introduction of a non-itemizer deduction and new limits for itemizers means it’s more important than ever to plan carefully.
…And remember, keep your donation receipts or statements of giving.