New Tax Law Allows Standard Deduction Takers to Claim Charitable Giving Deduction
What happened
A new tax provision, part of the One Big Beautiful Bill Act, allows taxpayers who take the standard deduction to claim a deduction for qualifying charitable cash contributions starting with the 2026 tax year. The deduction is capped at $1,000 for individuals and $2,000 for married couples filing jointly. Only cash donations made directly to IRS-recognized charities qualify; contributions of property or to donor-advised funds are excluded.
From thetimes-tribune.com
Why it matters
The change addresses a previous situation where most taxpayers who opted for the standard deduction received no direct tax benefit for charitable giving. The provision is expected to change tax planning strategies for millions of Americans.
From thetimes-tribune.com
Who's involved
- Howard DavisPresident of Davis, Davis & Associates, who commented on the impact of the new tax law.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Howard DavisSpeculative
Howard Davis's firm might see changes in client demand for tax strategy and advice due to the new federal tax law.
- PennsylvaniaSpeculative
Pennsylvania might see increased demand for specialized tax consulting services in the state.