Taxpayers who make cash contributions to eligible charitable organizations during Tax Year 2026 may qualify for a charitable contribution deduction. Deduction rules vary depending on whether the taxpayer claims the standard deduction or itemizes deductions.
Standard Deduction Taxpayers
Beginning in Tax Year 2026, taxpayers who do not itemize deductions may claim an above-the-line deduction for qualifying cash contributions to eligible charitable organizations of up to:
- $1,000 for Single, Head of Household, and Married Filing Separately filers.
- $2,000 for Married Filing Jointly filers.
Requirements
The contribution must:
- Be made in cash, by check, credit card, debit card, payroll deduction, or electronic funds transfer.
- Be made to an eligible charitable organization.
- Be supported by adequate records.
Limitations
The non-itemizer deduction generally does not apply to contributions made to:
- Donor-advised funds (DAFs)
- Private nonoperating foundations
- Supporting organizations
Itemizing Taxpayers
Taxpayers who itemize deductions may generally deduct qualifying cash contributions to public charities up to 60% of Adjusted Gross Income (AGI). The OBBBA made this 60%-of-AGI limitation permanent.
0.5% of AGI Floor
Beginning in Tax Year 2026, itemized charitable deductions are allowed only to the extent total charitable contributions exceed 0.5% of the taxpayer's AGI.
Example
- AGI: $100,000
- Cash Contributions: $10,000
- 0.5% of AGI Floor: $500
- Potential Deduction: $9,500
Carryforward Rules
Contributions that cannot be deducted because they exceed applicable AGI limitations may generally be carried forward and used in future tax years, subject to IRS carryforward rules.
Documentation Requirements
Taxpayers must maintain adequate records to support charitable contribution deductions.
Cash Contributions
For any cash contribution, retain:
- Bank records,
- Cancelled checks,
- Credit card statements, or
- Written communication from the charitable organization showing the organization's name, contribution amount, and contribution date.
Contributions of $250 or More
For any single contribution of $250 or more, the taxpayer must obtain and retain a contemporaneous written acknowledgment from the charitable organization. The acknowledgment must include:
- The amount contributed,
- A description of any non-cash property donated,
- Whether goods or services were provided in exchange for the contribution, and
- A good-faith estimate of the value of any goods or services received.