The charitable contribution deduction can lower your taxable income. Donations must be voluntary gifts to tax-exempt organizations, not for individual use. Deductions are limited to a percentage of your AGI, with different limits based on the type of contribution and organization. Keep documentation and check an organization’s status annually.

Starting in 2026, changes to the tax law will impact charitable giving deductions. Those taking the standard deduction can claim up to $1,000 for single filers or $2,000 for married filing jointly. Itemizers will face new restrictions, only able to deduct donations exceeding 0.5% of their AGI.

When giving to charity, remember that deductions lower your taxable income, not add money to your bottom line. Starting in 2026, you don’t need to itemize to claim the charitable tax deduction, with limits on both standard and itemized deductions for charitable giving. Always consult a tax professional for personalized advice.

Read more at Yahoo Finance: What you need to know for 2025-2026 taxes