Before you blink, we'll officially hit year-end charitable giving season. The kickoff, according to some, is one of those made-up days called "Giving Tuesday," which is the Tuesday after Thanksgiving.
Many people, of course, give to charities to honor all sorts of milestones and memories throughout the year. And if you do, you'll want to gather your paperwork before new rules hit during tax season next year.
Some taxpayers will be pleased to save money by claiming a new tax break in 2026 for giving cash to a charity; others will be shocked to see less tax savings than they'd typically expect for charitable deductions. It all depends on whether you claim the standard deduction or itemize.
In 2026, charitable giving takes on a new meaning when it comes
to claiming breaks on your federal income tax return.
Who is getting a bigger tax break for charitable contributions in 2026?
The One Big Beautiful Bill Act, which was signed into law by President Donald Trump in 2025, included big changes relating to charitable contributions that would hit in 2026.
If you claim the standard deduction, you didn't get any tax federal income tax break for contributing cash or property to a qualifying charity in 2025. Last tax season, for example, taxpayers had to itemize in order to deduct their charitable donations.
Beginning in 2026, a new deduction for cash contributions made to qualifying charities could apply to your 2026 return if you claim the standard deduction. Yes, you will not need to itemize deductions to claim this new tax break relating to charitable giving.
"Millions of taxpayers who take the standard deduction now have an opportunity to receive at least some federal tax benefit from charitable giving," Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, told the Detroit Free Press.
The new deduction — which would apply to your 2026 federal income tax return that's filed in 2027 — is limited to $1,000 for single filers and $2,000 for married couples filing jointly, per year. Experts say there is no provision to adjust these amounts for inflation.
O'Saben said the charitable deduction would be in addition to their standard deduction.
He noted that a recently released draft 2026 Form 1040 confirms that this is a below-the-line deduction.
The "Charitable contribution deduction for non-itemizers" appears on Line 12f of the 1040 form immediately after you'd claim the standard or itemized deductions from Schedule A on Line 12e.
As a result, O'Saben said, this special deduction for monetary contributions to a qualifying charity would reduce taxable income but it does not reduce adjusted gross income.
"The deduction should benefit people who regularly give to churches, food banks, schools, and other qualifying charities but haven't received a federal tax benefit because they take the standard deduction," O'Saben said.
Don't expect to save $1,000 on your taxes if you write a check for $1,000 to a qualifying charity.
Someone who is a single filer and writes a $1,000 check to a charity might save about $120 when their income is taxed at 12%, or they'd save about $220 if they're taxed at a higher 22% rate.
A married couple claiming the full $2,000 could save about $440 if that deduction reduces income taxed at 22%. Obviously, how much you'd save would depend on your income and circumstances.
Mark Steber, chief tax officer for Jackson Hewitt, said one mistake that tax filers might make is if they assume all donations they make to any group would be treated as a contribution to a qualified charity.
The charity, Steber said, must be recognized by IRS, which has a tool online for searching for qualifying organizations called "Tax Exempt Organization Search."
Some consumers, he warned, might fall for scams and donate to a fake company that poses as a charity. "These donations, even if they were made with good intent, will not count toward the charitable donation deduction," Steber said.
Tax filers will want to make sure to understand some key restrictions.
The non-itemizer deduction applies only to qualifying monetary contributions.
You do not get this special tax break when you donate clothing, household goods, stock or other property to a charity.
"Gifts to individuals also aren’t deductible," Steber said.
You're not going to be able to give money directly to a crowdfunding campaign to cover someone's medical bills or hardship and expect a tax deduction.
Taxpayers need to keep good records of their charitable donations, such as a receipt. And the donation must be made during the calendar year, which is Jan. 1 through Dec. 31, to count toward the tax deduction for that tax year.
O'Saben noted that contributions to donor-advised funds and supporting organizations don't qualify.
Does this charitable giving tax break sound familiar?
A charitable deduction for non-itemizers was put into place for 2020 — a $300 above-the line deduction before calculating adjusted gross income, said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting in Riverwoods, Illinois.
The law was changed for 2021, creating $300 deduction below-the-line deduction, after calculating AGI, for single filers and a $600 deduction for married filing jointly. But that deduction for non-itemizers expired for 2022 through 2025.
Charitable giving tax break gets dinged for some
Taxpayers who itemize their deductions on Schedule A — including people with mortgage interest, sizable unreimbursed medical expenses and others — face a new rule when it comes to charitable deductions made in 2026. And many people won't be thrilled to spot this change.
For taxpayers who itemize, a new floor relating to charitable giving will be put into place on your 2026 income tax return filed in 2027.
Beginning in 2026, only the amount of total charitable contributions that exceeds 0.5% of your adjusted gross income is deductible. The 0.5% floor applies only to those who itemize charitable deductions on 2026 federal income tax returns and afterward.
If your adjusted gross income is $100,000 in 2026, the first $500 of charitable contributions is not deductible. Only the amount above $500 is deductible, subject to the usual AGI percentage limits. Someone whose AGI is $300,000 would only be able to deduct the amount that exceeds $1,500.
When it comes to itemizing deductions, though, you can claim both cash contributions and other donations, such as clothing, household goods and other property. Typically, you'd claim the fair market value of donated goods, but you must follow other IRS rules, too.
For itemizers, O'Saben said, the new 0.5% floor may make strategies such as bunching charitable contributions into a given year worth discussing with a tax professional.
It can be confusing but no such floor relating to adjusted gross income applies to the new tax charitable tax break for those who claim the standard deduction.
"For year-end planning, I would tell taxpayers to give because they want to support an organization, not simply because there's a tax deduction," O'Saben said.
Even so, it will pay next year at tax season if you take time to understand the new rules before Dec. 31. You'd want to verify the charity, make sure the type of contribution qualifies, keep your records and consider the timing of larger gifts.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: Big Beautiful Bill packs big tax changes for 2026 charitable giving
