For Itemizers only: The 0.5% AGI floor applies to the sum of all your qualifying charitable contributions for the entire tax year & not each donation or each charity.
Example:
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Your AGI: $300,000
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0.5% AGI Floor: $300,000 times 0.005 = $1,500
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Your Total Donations for the year: $5,000
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Your Itemized Deduction: $5,000 (Total Donations)- $1,500 (AGI Floor) = $3,500
The amount equal to the floor is not deductible. If your 0.5% AGI floor is $660, then that $660 is not deductible. If you donated exactly $660, your deductible amount would be $0. If you donated $1,000, your deductible amount would be $340 ($1,000 - $660).
You are also correct that official IRS clarity is currently limited, as the law is newly enacted and its major provisions only take effect in 2026. The IRS typically issues detailed guidance, publications, and forms closer to the effective date.
@jcgbus Thanks for the question!!
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