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President Donald Trump‘s “large stunning invoice” consists of trillions of dollars of tax breaks, together with a brand new charitable deduction for many filers — and there is a straightforward strategy to maximize it, specialists say.
When submitting taxes, you declare the higher of your itemized tax breaks or the usual deduction. However 90% of filers do not itemize, in line with the website IRS information, which suggests they can not take the charitable deduction.
This adjustments in 2026 with a brand new charitable tax break for non-itemizers, value as much as $1,000 for single filers and $2,000 for married {couples} submitting collectively. The deduction solely applies to money presents.
“This can be a large deal,” mentioned Justin Miller, companion and nationwide director of wealth planning at Evercore Wealth Administration.
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Trump’s new charitable deduction is just like a short lived measure enacted during the pandemic, which was value as much as $300 for single filers or $600 for joint filers for 2021. Roughly 48 million filers claimed that deduction on their 2021 returns, in line with IRS information.
With an even bigger charitable deduction coming for non-itemizers in 2026, listed here are some key issues to know, in line with monetary specialists.
This giving technique is a ‘no-brainer’
In case you do not itemize deductions and plan on making a smaller year-end charitable reward this yr, you may rethink the timing if there’s flexibility, specialists say.
“It looks as if a no brainer to simply do it in January and seize just a little profit that you just would not in any other case obtain,” mentioned licensed monetary planner Edward Jastrem, chief planning officer at Heritage Monetary Companies in Westwood, Massachusetts.
By donating funds in 2026 moderately than 2025, you can be eligible for the brand new charitable deduction for non-itemizers. After all, you must think about whether or not it aligns along with your general monetary planning technique.
You want a ‘written acknowledgement’
“I’d warning all taxpayers claiming these deductions that they nonetheless must hold applicable data,” Miller mentioned.
Items of any quantity require a financial institution document or written receipt from the group, together with the charity identify, quantity and date of the contribution, according to the IRS.
In case you donate $250 or extra, you want what’s referred to as a “contemporaneous written acknowledgement,” or CWA, with additional element from the group.
You could have the CWA on or before the sooner of:
- the date you file your return for the yr of the donation or
- your return’s due date, together with extensions
“If you’re ever audited, and you do not get that letter, you possibly can’t repair it,” which may disallow the deduction, Miller mentioned.
