To claim a federal charitable deduction, your gift must go to a qualified organization. In most cases, that means a nonprofit recognized as a 501(c)(3). Donations to individuals and political campaigns don't qualify, even when the intent is charitable.
Cash gifts are the most common, but non-cash contributions may also qualify. Either way, good records matter. Clean documentation protects your deduction and reduces the risk of issues later.
Most public charities and religious organizations qualify. Some private foundations qualify, too, but different limits may apply. If you're giving to a newer organization or making a larger gift, it's smart to confirm eligibility before you donate.
OBBBA reshaped charitable deduction rules starting in 2026.
If you itemize, you can only deduct the portion of your total charitable contributions that exceeds 0.5% of your adjusted gross income. That change can reduce the deductible impact of smaller giving totals, especially for higher earners.
If you take the standard deduction, you may still be able to deduct up to $1,000 in cash contributions, or $2,000 for joint filers, even without itemizing. That creates a new planning opportunity for households that don't typically itemize.
High earners should also know that itemized deductions may produce less tax savings than before, due to a new limitation on their tax value. The details depend on your bracket and your full return, so this is a place where expert tax projections matter.
Charitable deductions don't exist in isolation. They interact with income planning, itemizing decisions, and other deductions. In 2026, the new AGI (Adjusted Gross Income) floor and non-itemizer deduction make that coordination even more important.
A CPA can help you evaluate your current giving levels in the context of your projected income, confirm what documentation you'll need, and decide whether itemizing is likely to benefit you this year.
Do all donations reduce my taxes? No. Only gifts to qualified organizations may be deductible, and limits apply.
Should I wait until year-end to decide? You don't have to. Early tax planning gives you more control, especially in 2026.
Can I benefit if I don't itemize? Possibly. OBBBA created a capped deduction for certain cash gifts, even when you take the standard deduction.
Charitable planning works best when it's tied to your full tax picture. Myrick CPA offers tax advisory services at multiple service levels for both new and existing clients. Through virtual consultations and a secure online portal, we work with clients nationwide to build clear, proactive tax plans for 2026 and beyond.
Take control of your charitable giving for 2026. Schedule a tax advisory consultation with Myrick CPA today and make sure your donations work to your best advantage under the most current tax laws.