Changes to Charitable Contribution Deduction Starts Now
Major changes will affect how you deduct charitable contributions on your 2026 tax return
The One Big Beautiful Bill Act made some changes to the charitable donation’s deduction effective with the 2026 tax year.
For those who do not itemize and take the standard deduction, you are now allowed to take up to a $1,000 deduction for donations and twice that amount for married couples filing jointly. You still must have the proper documentation, but essentially, your “standard deduction” increases by that amount.
For those who itemize, there will be at least one haircut and another haircut for those with higher income.
The first .5% of adjusted gross income (AGI) will now reduce your deduction for charitable donations.
As an example, assume your AGI is $400,000 and you donate $15,000 to charity. In 2025, you could have deducted the full $15,000. However, in 2026, your deduction will be limited $13,000 ($15,000 - $2,000 ($400,000 X .5%)).
