2026 Could Mean More Donations to Charity and Less Taxes!
We hear from a lot of our clients about the importance of giving back to charity and supporting various causes. If you find yourself giving to charity throughout the year, or are looking to begin gifting in 2026, the latest tax bill will bring good news. As a part of the One Big Beautiful Bill Act, there are changes to the rules around charitable giving for all taxpayers, regardless of whether you itemize deductions or take the standard deduction. If you are charitably inclined, it is important to note these changes as it might adjust how and when you give. Here's what you need to know:
For those that take the standard deduction, you may remember a few years ago (2020 and 2021) that you were able to temporarily deduct charitable gifts up to $600 for those married filing jointly. Moving forward in 2026, the new deduction amounts are higher than before and are as follows:
- Single filers may deduct an additional $1,000 in cash donations
- Those that are Married Filing Jointly may deduct an additional $2,000 in cash donations
So, what does this mean for you? These are what we call above the line deductions, meaning they come straight from your income before your tax liability is calculated. This is helpful in reducing your taxable income as well as avoiding going over certain income limit thresholds. More donations to the causes you feel are important and less taxes, who wouldn’t want that!
The important thing to pay attention to is that this applies to cash donations. You are only eligible for this deduction if the donation is made via credit card, check, cash, or payroll deduction. To be on the safe side of things, make sure to keep your receipts so you can note the deduction come tax time.
For those of you that itemize deductions and are in the highest tax brackets, let’s talk! There were other changes that may affect your giving in different ways. As always, if you have any questions about the rule changes, please feel free to reach out. We are here to help. Happy giving!
Sources:
Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice.
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