▪ The deduction begins with the 2026 tax year
▪ Annual limit of up to $1,000 for individual returns or $2,000 for joint returns
▪ Cash contributions to eligible organizations qualify; property and stock do not
▪ Keep a record and obtain written acknowledgment for gifts of $250 or more
Beginning in 2026, taxpayers who claim the standard deduction can also receive a federal deduction for certain charitable cash contributions. This permanent provision gives non-itemizers a tax benefit for charitable giving, but it has specific dollar limits, organization requirements, and recordkeeping rules.
Internal Revenue Code Section 170(p) allows an individual who does not itemize deductions to claim a charitable-contribution deduction for qualifying cash contributions made during the taxable year. The deduction is limited to:
▪ $1,000 for an individual return; or
▪ $2,000 for a joint return.
The provision applies to taxable years beginning after December 31, 2025, making it available beginning with the 2026 tax year. It is separate from the standard deduction, meaning an eligible taxpayer may claim both the standard deduction and the limited charitable deduction.
Although frequently described as an “above-the-line” deduction, the statutory structure is more precise: section 170(p) creates an additional deduction for taxpayers who do not itemize; it is not listed among the adjustments used to calculate adjusted gross income under section 62(a). In practical terms, it reduces taxable income in addition to the standard deduction, rather than reducing adjusted gross income (AGI) for purposes of other tax thresholds.
The deduction is limited to contributions made in cash to organizations described in section 170(b)(1)(A). These generally include:
▪ Churches and other religious organizations;
▪ Qualified educational organizations;
▪ Nonprofit hospitals and certain medical research organizations;
▪ Federal, state, and local governmental units when the contribution is for a public purpose; and
▪ Publicly supported charitable organizations.
Not every tax-exempt organization qualifies. Section 170(p) specifically excludes contributions made to:
1. A supporting organization described in section 509(a)(3
2. A donor-advised fund established or maintained under section 4966(d)(2).
A contribution earmarked for a specific individual also is not deductible. Similarly, the deductible amount must be reduced by the value of goods or services received in exchange for the payment.
“Cash” generally includes money, checks, electronic funds transfers, online payment services, debit-card and credit-card payments, and qualifying payroll deductions. Donations of property, stock, services, or volunteer time do not qualify for the non-itemizer deduction under section 170(p).
Taxpayers should also be mindful with donations that generate state or local tax benefits. A state or local tax credit may reduce the federal charitable contribution by the amount of the credit.
For taxpayers who itemize in 2026, section 170(b)(1)(I) generally permits a charitable deduction only to the extent total qualifying contributions exceed 0.5 percent of AGI. For example, a taxpayer with $200,000 of AGI generally must exceed $1,000 in charitable contributions before an itemized charitable deduction becomes available.
That floor does not apply to the non-itemizer deduction. Section 170(p) directs taxpayers to calculate the deduction without regard to section 170(b)(1)(I). Thus, a taxpayer using the standard deduction can claim qualifying contributions below 0.5 percent of AGI, subject to the $1,000 or $2,000 dollar cap. Section 170(p) also disregards the charitable-contribution carryover rule in section 170(d)(1), so amounts exceeding the annual cap are not carried forward under this special deduction.
The deduction is not automatic. For every cash contribution, the taxpayer must maintain either:
▪ A bank record showing the organization’s name, contribution date, and amount; or
▪ A written communication from the organization containing that information.
For an individual contribution of $250 or more, the taxpayer generally must also obtain a written acknowledgment from the organization. The acknowledgment must state the amount contributed and whether the organization provided goods or services in return.
The non-itemizer deduction is not necessarily the most valuable choice. A taxpayer should compare:
▪ The standard deduction plus the $1,000 or $2,000 charitable deduction; versus
▪ Total allowable itemized deductions, including charitable contributions.
Itemizing may produce a larger deduction when charitable gifts and other itemized deductions, such as deductible state and local taxes, mortgage interest, and qualifying medical expenses, exceed the standard deduction. But itemizers must account for the 0.5-percent charitable floor and the overall limitation on itemized deductions that can apply to higher-income taxpayers.
Beginning in 2026, a taxpayer who claims the standard deduction may deduct up to $1,000 of qualifying cash charitable contributions, or $2,000 on a joint return. The contribution must be made during the tax year to an eligible organization, cannot be directed to a donor-advised fund or supporting organization, and must be properly documented. Taxpayers should compare this capped deduction with the potential benefit of itemizing, particularly when charitable giving and other itemized deductions are substantial.
Top Row L to R: Brad Engle, Mike Sullivan, Sebrina Ivey, Christian Lewton, Jason Kitner
Bottom Row L to R: Carin Wagner, Angela Kennedy Lee, Jenny Merges, Brian Friedman, Deirdre Mcguire, Barbara Terrazas, Reed McCoy