Tax Tip #258

Charitable donations are just one of the allowable deductions when itemizing on your tax return. Approximately 15% of taxpayers itemize instead of taking the standard deduction. The remaining 85% do not receive a federal tax benefit for charitable donations. 

Starting in 2026 under the Big Beautiful Bill, taxpayers who do not itemize can deduct $1,000 (single) or $2,000 (MFJ) for certain charitable deductions. 

For example, a single taxpayer who takes the standard deduction and donates $900 to charity can deduct the full $900. However, if the filer donates $1,900 to a qualifying charity, this taxpayer’s deduction will be capped at $1,000.

Have questions about the Big Beautiful Bill? Contact a team member for more information.