Small Business Tax Savings Podcast

New Charity Tax Rules in 2026. How the One Big Beautiful Bill Changes Your Deductions

Mar 4, 2026
Changes to charitable giving rules take effect in 2026, including a new deduction for non-itemizers and a 0.5% AGI floor for itemized donations. A cap limits the tax benefit for top earners to 35 percent. New rules for pass-throughs and C corporations change how business giving is treated. Strategies like bunching and qualified charitable distributions are discussed as ways to preserve tax value.
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INSIGHT

Itemizing Used To Be Required For Charity

  • Charitable deductions historically required itemizing, and many donors now miss deductions because the standard deduction is larger.
  • Mike Jesowshek explains itemizing used to be common with mortgage interest and property taxes but fewer people itemize now.
ADVICE

NonItemizer Cash Deduction Up To $2,000

  • Starting in 2026 standard-deduction filers can claim a cash donation deduction: $1,000 single or $2,000 married.
  • Mike notes this applies only to cash gifts to 501(c)(3)s and excludes donor-advised funds and private foundations.
INSIGHT

New HalfPercent AGI Deduction Floor

  • Itemizers face a new 0.5% of AGI floor: only donations above that floor are deductible.
  • Example: with $200,000 AGI a $10,000 gift yields only a $9,000 deduction because $1,000 equals 0.5% floor.
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