The One Big Beautiful Bill Act of 2025 (OBBBA) introduces several important changes to how charitable donations are treated for tax purposes, starting primarily in 2026. These changes take effect for tax years beginning after December 31, 2025.
- For Taxpayers Who Don't Itemize:
- you will be able to deduct a limited amount of cash donations to qualified charities even if you take the standard deduction.
- Up to $1,000 for single filers
- Up to $2,000 for married filing jointly.
- For Taxpayers Who Do Itemize:
- Itemizers can only deduct charitable contributions above 0.5% of their AGI.
- Starting in 2026, the maximum tax benefit is capped at 35%, even for those in higher tax brackets (e.g., 37%)
@nnennak Thanks for the question!!