Tax Change for Tax Year 2026 Regarding Charitable Deductions

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I've read lots of stories on changes in exemptions and tax brackets for TY 2026, but they often omit an important tax change that will help givers. Starting for Tax Year 2026, taxpayers can exclude right on Form 1040 $1000 each for charitable cash gifts. That means $2000 for joint filers.

It isn't available on the 2025 forms that you we are filing this spring, but it will be available on next year's returns. This is FYI so you can plan your yearly giving and be ready to take advantage at the end of the year.

Of course, we ought to give to charity with a glad heart, but it doesn't hurt to have an incentive. Some charities have reported a decrease in donations since the very high Standard Deductions went into effect in 2017.

Moreover for those on the cusp of a higher tax bracket, it could keep you out of that bracket increasing your savings.

Happy Giving!