As we head into the holidays, many people start thinking not only about gifts for loved ones, but also about supporting the charities they care about. With new tax rules taking effect in 2026, this is a good time to revisit your giving strategy—especially if you typically itemize deductions. You may also want to take note of the annual gift tax exclusion – the amount you may offer as a one-time gift, typically to family members, without worrying about tax reporting.
Many taxpayers may benefit from front-loading charitable gifts in 2025 before the new limits begin. Here’s a quick look at what’s changing in 2026:
- If you take the standard deduction:
You’ll be able to claim a charitable deduction of $1,000 ($2,000 for married couples filing jointly). This is a welcome change and may encourage more people to give. - If you itemize:
Only contributions above 5% of your AGI will be deductible—the new “0.5% AGI floor.” Deduction caps ranging from 30% – 60% of AGI exist for cash and non-cash donations.
Because of these adjustments, it’s worth thinking ahead about your giving plans for 2025 and 2026. Three key questions can help guide your approach:
- How much will I give?
- Will I take the standard deduction or itemize?
- How will I give?
If you are a high-income earner planning significant charitable contributions, frontloading your donations in 2025 may make sense. Other tax strategies may also apply that are not covered here.
How Much Will I Give?
Your giving amount might be tied to a favorite organization, a yearly goal, or a percentage of income. Understanding your likely tax filing method—and your tax bracket—can help you decide whether to accelerate giving and tax deductions this year or spread them over time.
Will I Take the Standard Deduction or Itemize?
Deductions reduce your taxable income. Itemizing makes sense when your deductible expenses—mortgage interest; state, local, sales, and property taxes; charitable contributions; disaster losses; and medical/dental expenses—exceed the standard deduction.
Standard Deduction Amounts
|
Filing Status |
2025 Deduction Amount | 2026 Deduction Amount |
| Single | $15,750 | $16,100 |
| Married, filing separately | $15,750 | $16,100 |
| Head of Household | $23,625 | $24,150 |
| Married filing jointly | $31,500 | $32,200 |
| Surviving Spouses | $31,500 | $32,200 |
Additional Senior Deduction (Age 65+)
This amount is effective 2025-2028 and phases out as modified adjusted gross income (MAGI) rises.
|
Filing Status |
Senior Deduction | Phase-out begins (MAGI) | Fully Phased-out at MAGI |
| Single | $6.000 | $75,000 | $175,000 |
| Married, filing separately | None | – | – |
| Head of Household | $6,000 | $75,000 | $175,000 |
| Married filing jointly | $12,000 | $150,000 | $250,000 |
| Surviving Spouses | $12,000 | $150,000 | $250,000 |
How Will I Give?
- Cash
Pairing cash gifts with tax-loss harvesting can allow you to offset capital gains while still making donations and claiming a charitable deduction. - Non-cash assets
Donating appreciated investments held for more than a year lets you avoid capital gains tax and deduct the full fair market value—often increasing the amount that reaches the charity. - Donor-Advised Funds (DAFs)
Contributing appreciated assets to a DAF provides an immediate deduction and allows the assets to grow tax-free until you make grants. DAFs are also great for “bunching” several years of gifts into one high-income year so you can itemize that year and then take the standard deduction in others. - Qualified Charitable Distributions (QCDs)
If you’re over 70½ in 2025, you can donate up to $108,000 directly from eligible IRAs to a qualified charity (but not a DAF). QCDs satisfy RMDs and are excluded from taxable income—helpful even if you don’t itemize. Just remember: you can’t claim a charitable deduction for a QCD.
ANNUAL GIFT TAX EXCLUSION
Finally, we often receive questions about the gift tax exclusion. In 2025, you may gift up to $19,000 per recipient. For married couples, you are eligible to gift $38,000 per recipient. This isn’t considered a charitable deduction, but you may gift this amount without any tax implications.
As you think about your year-end gifting and giving, we hope this helps clarify your options and inspires generosity in a way that’s both meaningful and tax-smart. If you’d like to talk through the best approach for your situation, we’d be happy to help.
