If you’ve donated to your church, supported a local food pantry, or helped a favorite charity over the years, you have likely done so because you care about the cause and not for the tax deduction. In recent years, many taxpayers who claimed the standard deduction received little or no tax benefit for those gifts. As of 2026, that changes.
The “One Big Beautiful Bill Act,” signed into law on July 4th, 2025, included many tax extensions and new exemptions, including a new rule allowing taxpayers who claim the standard deduction to deduct qualifying charitable contributions.
For Example:
A married couple normally takes the standard deduction and writes checks totaling $1,500 annually to their church. They may now be able to receive a tax deduction for those contributions without needing to itemize.
The deduction is not unlimited and is capped at the following:
- Up to $1,000 for single filers
- Up to $2,000 for married couples filing jointly
A few important details:
The donation cannot be to a donor-advised fund and must be made in cash.
| Cash Donations Allowed: Cash Contributions Checks Credit Card Donations Electronic payments from bank accounts Venmo | Not Allowed: Non-cash property donations Appreciated stock or investment donations |
Be sure to keep a record of your cash donations. If not provided already, request an end-of-year statement from the charitable organization to keep on file. You will not need to submit this with your taxes, but you will need a record in the case of a tax audit.
Benefits:
This deduction will lower your taxable income, but not your adjusted gross income (AGI). Therefore, any calculations that involve AGI will not benefit, such as taxation of Social Security or Medicare premiums. For individuals and families who already make charitable donations, this is a welcome change.