Hi there.
Most people who used to itemize stopped with the Tax Cuts and Jobs Act of 2017 (TCJA). The standard deduction rose so steeply that it just doesn’t make sense to itemize for most households. Before the 2017 tax law, about three in ten filers itemized. The next year, it was closer to one in nine. While that made tax time simpler for many households, it did change giving.
Giving dipped at first. One careful study found that households who lost the deduction gave roughly $900 less a year on average. What’s interesting is that giving to churches barely moved.
Up through last year, if you weren’t itemizing your deductions, you didn’t get to deduct your charitable contributions from income when you filed your taxes. With the standard deduction at $16,100 for single filers, and $32,200 for married filing jointly (in 2026), your giving – on top of mortgage interest and state and local taxes – needed to be substantial before itemizing beat the standard deduction.
Fortunately, there’s been a change in the tax law starting in 2026. As of November 2026, according to IRS Publication 6196, everyday filers who take the standard deduction are eligible to deduct up to $1,000 of cash gifts on top of the standard deduction – $2,000 if you’re married filing jointly. This isn’t a reason to give more than you planned. It’s a reason to know what the giving you were already doing is worth. A few rules to know:
It has to be cash. Checks, cards, and bank transfers count. Donated clothes or stock don’t.
It has to go to a qualifying public charity, like a church, school, or local nonprofit. Gifts to a donor-advised fund or a private foundation don’t count.
Keep your receipts. Any single gift of $250 or more needs a written acknowledgment from the charity.
For everyone who’s been making regular charitable contributions of $2,000 or more per year, but hasn’t been deducting it, that’s worth money come tax time. If you’re married and in the 22% tax bracket, that’s another $440 off your federal taxes.
With the higher cap on state and local tax deductions, a few more people may find itemizing worth it again. Whether you’re one of them depends on your own numbers, so it’s worth checking which side you’re on each year.
If you land on the itemizing side, this new deduction isn’t yours. And starting in 2026 there’s a new wrinkle: the first 0.5% of your adjusted gross income that you give isn’t deductible. That makes strategies like grouping two years of giving into one (“bunching”), sometimes through a donor-advised fund, worth a fresh look. One catch if you bunch through a donor-advised fund: in the off years, grants going out of the fund aren’t your deduction, and new money going in doesn’t qualify for this one either. To capture it, that amount has to go straight to the charity. Worth a conversation with your tax professional if that’s you.
I’m glad to see the tax code nudging toward generosity. Who do you like to support?
Until next time, God Bless.
Ian
This is meant as educational information, and not intended as advice. I’m a CFP® professional, not a CPA, EA or tax attorney. Please seek qualified tax advice from a licensed tax professional.
