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📌 Main takeaway:
Key takeaways
- The “Big Beautiful Bill” restores a tax rule and makes it permanent, allowing those who don’t itemize their taxes to deduct up to $1,000 from their charitable contributions starting next year.
- Some taxpayers who donate to charity at the end of the year may want to defer their gift until next year to take advantage of the expanded deduction.
The “big, beautiful bill” would allow taxpayers who don’t itemize to deduct their charitable contributions starting next year. This means that donations made in January or later could lower your 2026 tax bill.
This partial deduction is similar to the temporary measure implemented during the COVID-19 pandemic. It will go back into effect next year and remain in effect for all future tax years. Non-iterating taxpayers can begin using the deduction when filing their 2026 taxes through the 2027 filing season.
Why is this important?
The number of Americans donating to charity has declined since 2017, when the standard deduction increased and the donation tax incentive ended. Reintroducing the charitable deduction for non-itemizing taxpayers could prompt more people to donate in future years.
Typically, taxpayers can’t deduct their donations unless they itemize their taxes. Starting next year, non-itemizing taxpayers, i.e. those who take the standard deduction, will be able to subtract from their taxable income the amount of donations made to charities, which will reduce their overall tax burden.
Single taxpayers will be able to deduct up to $1,000, and taxpayers filing jointly can take up to $2,000 of their charitable contributions out of their taxable income each year.
You may want to rethink your donations for 2025
Although this new charitable deduction won’t affect your 2025 taxes, it may change your year-end giving strategy.
For many Americans who donate to charities during the holiday season, tax experts suggest postponing those gifts until next year. Donating in January instead of this month can help you save money on your tax bill in the long run.
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