In 2026 there is a new charitable deduction available for taxpayers that
do not itemize deductions. Cash contributions, to a 501(c)(3) charity, can
be deducted above and over the standard deduction of up to $2,000 for a
Married filing Joint return and $1,000 on all other returns. The contribution
must be cash and may not be made with non-cash items including stocks.
Also in 2026 there will be a non-deductible threshold that itemizers must
first pass in order to deduct charitable contributions. A taxpayer may only
deduct charitable contributions greater than 0.5% of Adjusted Gross
Income.
As in the past taxpayers that are 70 ½ or older may use their IRA
accounts to make charitable contributions and have those distributions be
free of tax.
Finally, taxpayers in the highest tax bracket of 37% will have all of their
itemized deductions limited to effectively only benefit by 35%.
All of this means planning is needed to ensure when you donate to
charity you not only assist the charity but that you are being as tax efficient
as possible. Call us to assist you with your planned charitable giving.