--- title: Tax Breaks for Charitable Contributions Are Returning for 150 Million Americans description: In a major policy shift, new Trump tax rules will allow Americans who take the standard deduction to claim a charitable-giving deduction. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 501 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: A graduate of the University of Florida, Julia has more than eight years of experience in personal finance journalism. In addition to overseeing news and newsletters, she leads Money’s tax coverage, which includes extensive reporting on tax credits, policy changes and the IRS. education: University of Florida at_money_since: 2018 articles: 453 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2025-07-29T18:17:27.000Z' modified: '2026-02-25T19:33:01.000Z' section: Taxes tags: - News word_count: 1027 canonical: https://money.com/charity-donation-tax-deduction-non-itemizers/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Cash with a gift bow on it](https://img.money.com/2025/07/News-Charitable-Dontation-Tax-Breaks.jpg) In a major policy shift, the vast majority of Americans may soon be eligible for a modest tax break on qualifying charitable donations under President Donald Trump’s sprawling [One Big Beautiful Bill Act](https://money.com/trump-tax-cuts-big-beautiful-bill/). Starting in the 2026 tax year, new rules will allow taxpayers who take the standard deduction — about 90% of all taxpayers — to also claim a charitable-giving deduction. Single filers will be able to deduct $1,000, and married couples filing jointly will be able to deduct $2,000. This matters because, each year, Americans choose one of two methods for filing their individual income taxes. They can itemize their deductions, meaning they lower their taxable income by subtracting specific expenses or losses by filling out out a Schedule A form; or they don't itemize and take the standard deduction, a predetermined amount of money that's shielded from taxes. Previously, non-itemizers couldn't financially benefit from their donations to charity. That's changing, thanks to Trump's latest tax law. “If you don't itemize, you now have the opportunity to write off your charitable giving,” says Rob McClelland, a senior fellow at the nonprofit Tax Policy Center. ### Rated A+ by the BBB ![Get Started](https://s3.consumersadvocate.org/prd/image/image/14979/medium_d9420f2c-6d0b-4726-b903-60fb37740830.png) Our Partner [Get Started](https://money.com/go/e881a2bd8866?bidid=4118247425&pmeta=p129-c739-u28541&ptid=671105638&ptoken=25a96191281001b740d8ce94f25fb455) ### Over 15 years of Experience ![Get Started](https://s3.consumersadvocate.org/prd/image/image/36123/medium_d8e31451-10fb-4690-a053-85981545c371.webp) Our Partner [Get Started](https://money.com/go/6ac62e6404be?bidid=4118247437&pmeta=p129-c739-u28541&ptid=671105638&ptoken=d89a2439cab4f18671ae6e7de9fc87de) ### 12+ years of tax resolution experience ![Get Started](https://s3.consumersadvocate.org/prd/image/image/19221/medium_21c467f5-9614-45a6-a827-5c1698cf1de6.png) Our Partner [Get Started](https://money.com/go/6c9fcff44ad5?bidid=4118247422&pmeta=p129-c739-u28541&ptid=671105638&ptoken=dcc8f3add953cfce859314c87f2f54ef) ### 21+ years in service ![Get Started](https://s3.consumersadvocate.org/prd/image/image/37015/medium_cb5bc133-3b62-412b-9420-e17d1c5aaa63.webp) Our Partner [Get Started](https://money.com/go/1d61f3149dc9?bidid=4118247433&pmeta=p129-c739-u28541&ptid=671105638&ptoken=e0d7feca5874dc9b706fa51802830e28) ### 24/7 Client Portal Access ![Get Started](https://s3.consumersadvocate.org/prd/image/image/38669/medium_134094f5-0d61-4290-98dd-6ea7bc5551c2.webp) Our Partner [Get Started](https://money.com/go/81689c660947?bidid=4118247428&pmeta=p129-c739-u28541&ptid=671105638&ptoken=622c4daf1826eefeae46d8b7b50528f4) Before Trump signed the Tax Cuts and Job Act, or TCJA, during his first presidential term, about 1 in 3 tax payers itemized their deductions. Then Trump’s tax law in 2017 significantly increased the standard deduction (it was $6,350 for singles; it's now reached $15,750), and millions of people stopped itemizing, largely out of simplicity. Claiming the standard deduction made them ineligible for most other tax deductions, including for charitable donations. The move was seen largely as a disincentive for charitable giving. And it had an immediate impact: A [study](https://philanthropy.indianapolis.iu.edu/news-events/news/_news/2024/tax-law-change-caused-us-charitable-giving-to-drop-by-about-20-billion-new-study-shows.html) by Indiana University found that donations to charity declined by $20 billion in 2018 as a result of the TCJA. "The TCJA substantially reduced the tax incentive for people to give to charity by nearly doubling the standard income tax deduction," the researchers wrote. (There was a brief period during the pandemic in which non-itemizers could claim a $300 deduction for cash contributions to charity, but that provision expired in 2022.) Back to 2025. Upwards of 150 million Americans could be newly eligible for a modest tax break if they donate to charity. The roughly 10% of taxpayers who itemize their taxes can take the new charitable-giving deduction, too, but it may not come as any benefit to them since they tend to be high-income earners who would get a larger tax break by taking advantage of other IRS provisions. While the deduction is good news for some taxpayers, the impact on charities is dubious. McClelland, a former tax analyst for the nonpartisan Congressional Budget Office, says that the changes won’t fix the underlying issue — folks being discouraged from donating to charity because the IRS won't reward it — because the enhanced standard deduction has been made permanent. While more people will be eligible for a small tax break, he says the actual dollar amount of charitable donations could fall due to fewer big donors. “Overall, I would say things got worse,” he says, referring to new disincentives for big-ticket donations to charities. ## Trump's charity tax deduction: who benefits? The main winners here, McClelland says, are taxpayers who typically take the standard deduction and donate small amounts of money each year, around $1,000. A key qualification for the deduction is that the donations in question need to be cash-based. If they meet the requirements, these donors can simply tack on the new charitable giving deduction to their existing slate and receive a small tax break. In effect, you could get a discount on your tax bill that’s in proportion to your tax bracket. So if you write off $1,000 and your tax bracket is 22%, you'd save $220. For folks who itemize their taxes, the new rules actually disincentivize charitable giving further, McClelland says. These taxpayers tend to be wealthy and donate thousands or even millions annually. According to the Tax Policy Center, about two-thirds of taxpayers with incomes over $500,000 itemize their deductions. Beginning next tax year, a different provision sets a threshold for itemized charitable contributions, equating to 0.5% of a taxpayer's adjusted gross income. For example, an itemizer earning $500,000 would need to exclude the first $2,500 of their donations before receiving any tax benefit. “Some of their contributions that used to be deductible will now no longer be deductible,” McClelland says, noting the changes basically amount to a tax increase for this group. Also, the tax benefit for top earners will soon max out at 35% — even though the top income tax bracket is 37%. Separate research from Indiana University found that this change alone could reduce charitable giving by as much as [$8.2 billion annually](https://independentsector.org/wp-content/uploads/2025/06/Lilly-Family-School-of-Philanthropy-Impact-of-Tax-Proposals-on-Charitable-Giving-June-2025.pdf). This double disincentive is why McClelland says he is worried about charitable donations falling overall. The new rules impact those who tend to give the most. The accounting firm [GHJ Advisors](https://www.ghjadvisors.com/ghj-insights/what-nonprofits-need-to-know-about-obbba), which specializes in the nonprofit sector, said these two provisions in particular pose "significant challenges" for the industry but notes that the extension of tax breaks to most Americans has the potential to "democratize charitable giving." Then there are the people in between, who aren't sure whether they're itemizing yet. They have some tough choices ahead. Those on the fence will want to consider separate provisions of the new tax package that increase other itemized deductions they can claim for state and local taxes, known as SALT deductions, which have been raised from $10,000 to $40,000. McClelland says the new 0.5% donation threshold, the reduced tax benefit for top-income earners and the increased SALT deductions all change the calculus. “We’re snowballing,” he says. “It can get really complicated really quickly.” The silver lining, at least, is the charitable-donation changes won’t go into effect until next tax year — impacting the taxes you'll file in spring 2027 — so folks have some time to [consult a financial planner](https://money.com/best-financial-planners/) for the best course of action. ## If you owe more than $10,000 in taxes, Tax Relief can allow you to break down your debt into payments ### Anthem Tax Relief provides a full menu of tax relief services to help clients get out from under the yoke of tax debt. 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