Overview
- The policy, part of the One Big Beautiful Bill Act of 2025, lets standard-deduction filers claim an above-the-line write-off for cash gifts beginning with the 2026 tax year.
- Eligible donations made in 2026 can be claimed on 2026 returns filed in 2027 without itemizing.
- The measure revives a COVID-era approach that extended limited charitable deductions to non-itemizers on a permanent basis.
- Experts say the change targets a decline in giving that followed the 2017 increase in the standard deduction, which reduced the tax incentive to donate.
- For itemizers, 2026 introduces a 0.5% of AGI floor for charitable deductions and caps the top tax benefit at 35%, making 2025 more favorable for large gifts by high-income taxpayers.