Charitable Giving: What Changed and What It Means for You
The Big Beautiful Bill (BBB) made major changes to charitable giving. Some taxpayers will see new benefits. Others will see tighter limits. Either way, how you give and how you track donations matters more than ever.
New Benefit for Non-Itemizers (Starting in 2026)
If you take the standard deduction, you can finally get a tax break for giving.
Beginning in 2026, you may deduct charitable cash contributions of up to:
- $1,000 if you file single
- $2,000 if you file jointly
This is an above-the-line deduction, meaning you get it even if you do not itemize. For most taxpayers, this is the biggest win in the new law.
New Limitation for Itemizers: The 0.5% AGI Floor
If you itemize, the rules tighten.
Starting in 2026, charitable deductions are subject to a 0.5% AGI floor.
That means:
- Only the portion of your donations above 0.5% of your AGI is deductible.
- Example: If your AGI is $200,000, the first $1,000 of donations gives you no tax deduction.
This change reduces the benefit of smaller annual donations for itemizers.
The 60% AGI limit for cash contributions is now permanent.
Disclaimer: This information is provided for general educational purposes only and should not be considered tax, legal, or financial advice. Individual circumstances vary. Please consult a qualified tax professional to determine eligibility and how the rules apply to your situation.
