New tax break worth up to $2K available to about 90% of filers next year
This is the season of giving, when philanthropists are generous and tax professionals occasionally get creative. This is because donations to charities and other non-profit organizations are tax deductible.
But historically, most taxpayers do not receive tax deductions for their charitable donations. Taxpayers have generally had to itemize to take advantage of the deduction, except for a brief period under Covid-19 relief legislation, but about 9 in 10 people use the standard deduction instead, according to the Internal Revenue Service.
But the rules regarding charitable deductions are changing. A provision in the so-called “big beautiful” bill that President Donald Trump passed in July allows taxpayers to deduct up to $1,000 for single taxpayers and $2,000 for married couples for the 2026 tax year.
For people considering writing a check to their favorite charity, it may make more sense from a tax perspective to wait until January to send the check, says Miklos Ringbauer, a certified public accountant and founder of accounting firm MiklosCPA.
“First of all, if they like to give, please give,” he says. “But if they’re making a strategic move and won’t itemize definitively for the 2026 tax year, it would benefit them to make a charitable donation in 2026.”
When it makes sense to wait to donate
To be clear, if you’re planning to donate to your favorite charity this holiday season, no one is telling you not to do it. In fact, many tax experts recommend not upsetting your financial plans in the name of optimizing your tax return.
“There’s definitely a tax calculation, but there’s also just charitable intent. You potentially need to send money to an organization and you want to do it now,” says Stephen Eckert, practice leader at Plante Moran National Tax Office. “This could potentially override some of that.”
But if a donation in January is as good as a donation in December, he says, you can make a charitable impact while saving a few bucks.
To get the new deduction, you’ll need to make a cash donation to a qualifying charity; Excludes donations to political campaigns, crowdfunding efforts, private foundations and donor advised funds.
Be sure to get a receipt for your gift; The IRS usually requires written confirmation Any donation exceeding $250.
Before making any moves for the 2026 tax year, it would be wise to consider whether major life changes on the horizon will drastically change your tax situation, says Ringbauer. The IRS’s rules regarding charitable donations are different and more complex for those that itemize deductions.
“This is where your trusted financial advisor, your accountant, comes in,” says Ringbauer. “Sit down with them before the end of the year, go over what your scenarios are, and you can come up with a really good solution. [a charitable tax strategy] “Whether it helps you or not.”
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