Tax Win! New Charity Deduction Could Save You Money (Starting 2026)
Published on January 4, 2026, 9:30 PM
Hey awardtrail friends! Big news on the tax front that could save you some cash, starting in 2026. A new law lets those of us who take the standard deduction (meaning we *don't* itemize) deduct up to $1,000 (single) or $2,000 (married filing jointly) in charitable donations from our taxable income. This is awesome because usually, if you take the standard deduction, you don't get any tax break for donating to charity. This applies to donations made via cash, credit card, or check to eligible charities. So, keep those receipts!
Now, before you start imagining all the extra points you'll earn donating with your travel rewards card, there are a few things to keep in mind. This deduction doesn't apply to donations of stock, property (like clothes), or to Donor Advised Funds. Also, it won't affect your state taxes or your Adjusted Gross Income (AGI). On the flip side, if you *do* itemize, there's a slightly less exciting change: you can only deduct charitable donations that exceed 0.5% of your AGI. So, while most of us will benefit from the new standard deduction option, those who already itemize might see a smaller deduction. Either way, it's a good idea to keep meticulous records of your donations.
