There is some good news for people who like to give. Starting in tax year 2026, taxpayers who take the standard deduction will be able to deduct some charitable donations. This change came from the One Big Beautiful Bill Act passed in 2025.
Until now, most people did not receive any tax benefit for donations unless they itemized deductions. Since most taxpayers take the standard deduction, that meant many generous donors never saw a tax break.
That is changing.
An above-the-line deduction reduces your Adjusted Gross Income (AGI) before you determine whether to itemize or take the standard deduction. In simple terms, it lowers your taxable income right away.
Beginning in 2026, taxpayers who take the standard deduction can claim:
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$1,000 for single filers
$2,000 for married couples filing jointly
This applies only to cash charitable contributions.
To claim this charitable deduction, a few rules still apply.
You must:
- Take the standard deduction
Donate cash (checks, credit cards, online giving, payroll deductions)
Give to a qualified 501(c)(3) charity
Follow normal IRS documentation rules for donations over $250
Some contributions do not qualify:
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Donor-Advised Funds
Private Foundations
This change could affect millions of taxpayers. Most Americans take the standard deduction, which means they previously received no tax benefit for charitable giving.
Now they will.
A smaller deduction was allowed during the pandemic, and millions of taxpayers claimed it. Because the new limits are higher, this one will likely be popular as well.
If you donate regularly, keep good records and save your receipts. The IRS documentation rules still apply.
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