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2026 Brings Big Changes To Charitable-Deduction Rules
['Tyler Durden']
Zero Hedge
One set of tweaks brings major changes to the tax treatment of charitable contributions, getting non-itemizers back into the tax-saving game but curtailing tax benefits for itemizers and higher-income filers.
For the masses, that reduced the appeal of charitable donations, since the only way to benefit from contributions was via an itemized deduction.
Losing a major selling point, the country's charities pushed for the creation of an "above-the-line" deduction for non-itemizers.
Unlike itemized charitable contributions, there's no carry-forward for contributions that exceed your cap on the deduction in a given year.
Generally, taxpayers can calculate the benefit of a tax deduction by multiplying it by their marginal tax rate.