By Nidia C. Skokanic, E.A. | November 2026
Charitable giving is about supporting causes that matter to you. But did you know that how and when you give can also affect your taxes?
Beginning in 2026, several important changes to federal tax law will affect charitable deductions for individuals, retirees, and businesses. Additional opportunities will become available in 2027.
Under the new rules:
- Taxpayers who don’t itemize may deduct up to $1,000, or $2,000 for married couples filing jointly, in qualifying cash donations.
- Taxpayers who itemize will face a new 0.5% adjusted gross income (AGI) floor on charitable deductions.
- Individuals age 70½ and older can make up to $111,000 in Qualified Charitable Distributions (QCDs) from eligible IRAs in 2026 and up to $222,000 (Married Filing Jointly).
- Beginning in 2027, a new federal scholarship tax credit of up to $1,700 per individual, or potentially $3,400 for married couples filing jointly, will become available for qualifying donations.
- C corporations will face a new 1% taxable-income floor on charitable deductions.
Some changes create new opportunities to save on taxes, while others limit deductions that taxpayers previously enjoyed.
Understanding these rules before making charitable contributions can help you make more informed financial decisions.
2026 Charitable Giving Rules at a Glance
| Who is affected? | What’s changing? | Amount or limitation |
| Taxpayers who don’t itemize | New deduction for qualifying cash donations | $1,000 per eligible non-joint return; $2,000 married filing jointly |
| Taxpayers who itemize | New charitable deduction floor | 0.5% of AGI |
| Taxpayers in the 37% bracket | Reduced tax benefit from itemized deductions | Generally limited to 35% |
| IRA owners age 70½ and older | Increased annual QCD limit | $111,000 per eligible IRA owner (RMD’s) |
| Donors to K–12 scholarship organizations | New federal tax credit beginning in 2027 | $1,700 per individual; potentially $3,400 married filing jointly |
| C corporations | New charitable deduction floor | 1% floor; 10% ceiling |
Let’s look at how these changes may affect your charitable giving strategy.
1. Can You Deduct Charitable Donations Without Itemizing in 2026?
Yes! One of the most welcome changes for 2026 is the return of a charitable deduction for taxpayers who don’t itemize.
Beginning with the 2026 tax year, eligible taxpayers can deduct qualifying cash donations of up to:
- $1,000 for single and other non-joint filers.
- $2,000 for married couples filing jointly.
This deduction is available to eligible taxpayers who do not itemize, generally in addition to the standard deduction.
Why does this matter?
In recent years, many taxpayers who took the standard deduction received no additional federal income-tax deduction for their charitable contributions.
Now, qualifying cash donations may provide a tax benefit even if you don’t itemize.
Example:
A married couple filing jointly takes the standard deduction and contributes $2,000 in cash to an eligible charitable organization during 2026.
Under the new rules, they may qualify for an additional $2,000 deduction, potentially reducing their taxable income.
Keep in mind that a tax deduction reduces taxable income, not taxes owed dollar for dollar. The actual tax savings depend on your circumstances.
Which donations qualify?
Generally, qualifying contributions must be made in cash to eligible charitable organizations. Cash donations can include checks, credit cards, debit cards, and electronic bank transfers.
The following do not qualify for this particular deduction:
- Donations of clothing, furniture, stock, or other property.
- Contributions to donor-advised funds.
- Contributions to supporting organizations and most private foundations.
You must also maintain proper documentation of your contributions.
Planning tip: Before making a donation, verify that the organization qualifies to receive deductible charitable contributions. Not every nonprofit organization is eligible.
The new non-itemizer deduction is permanent under current law, and its dollar limits are not indexed for inflation.
2. What Is the New 0.5% Floor for Itemized Charitable Deductions?
Taxpayers who itemize can still deduct qualifying charitable contributions. However, beginning in 2026, a new limitation applies.
Only the portion of your qualifying charitable contributions that exceeds 0.5% of your adjusted gross income (AGI) is generally deductible.
Here’s an example:
Assume your adjusted gross income is $200,000 and you make $10,000 in qualifying charitable contributions.
| Calculation | Amount |
| Adjusted gross income | $200,000 |
| 0.5% of AGI | $1,000 |
| Total charitable contributions | $10,000 |
| Potential deductible amount | $9,000 |
The first $1,000 does not produce a deduction for that year. The remaining $9,000 may be deductible, subject to other applicable limitations.
Additional limitation for high-income taxpayers
Taxpayers in the highest federal income-tax bracket, currently 37%, face another restriction.
Beginning in 2026, the overall limitation on itemized deductions generally reduces their maximum federal tax benefit to 35 cents per deductible dollar, rather than 37 cents.
For example, a $10,000 deduction may provide a maximum federal income-tax benefit of approximately $3,500 instead of $3,700.
This is separate from the new 0.5% charitable contribution floor.
Should you consider grouping charitable contributions?
Possibly.
If you regularly make substantial charitable contributions, it may be beneficial to combine two or more years of donations into one tax year.
This strategy, often called bunching, may help you exceed the 0.5% floor and make itemizing more advantageous.
A donor-advised fund may also be worth considering for larger contributions, allowing you to make a contribution in one year while recommending distributions to charities over time.
However, donor-advised funds have their own rules, and the deduction generally occurs when you contribute to the fund, not when the fund later distributes money.
Planning tip: Before making a large donation, compare the potential benefits of giving in 2026 versus a future tax year. Timing can make a meaningful difference.
3. How Do Qualified Charitable Distributions Work in 2026?
For retirees and individuals age 70½ and older, a Qualified Charitable Distribution (QCD) can be one of the most tax-efficient ways to support charitable organizations.
A QCD allows eligible IRA owners to transfer funds directly from an IRA to a qualifying charity without including the qualifying distribution in taxable income.
What is the QCD limit for 2026?
The annual QCD limit is $111,000 per eligible IRA owner.
For married couples, each spouse may use their own limit if both separately meet the requirements and have eligible IRAs.
That means a qualifying married couple could potentially make up to $222,000 in combined QCDs during 2026.
How can a QCD help with Required Minimum Distributions?
Individuals who are required to take annual distributions from retirement accounts may find QCDs particularly valuable.
Required Minimum Distributions (RMDs) generally begin at age 73 or 75, depending on the taxpayer’s birth year.
A qualifying QCD can count toward an IRA owner’s annual RMD.
Example:
Suppose your annual RMD is $40,000 and you typically donate $10,000 to charity.
Instead of withdrawing the full $40,000 and then writing a personal check for $10,000, you could arrange for your IRA custodian to transfer $10,000 directly to an eligible charity.
The result:
- $10,000 counts toward your RMD.
- The qualifying $10,000 is excluded from taxable income.
- You satisfy part of your charitable giving goal without first receiving the money personally.
Why are QCDs especially attractive under the new rules?
Unlike an itemized charitable deduction, a qualifying QCD is excluded from taxable income.
That means it is not subject to the new 0.5% charitable deduction floor or the limitation on itemized deductions for high-income taxpayers.
A QCD may also help reduce adjusted gross income, which can affect other income-based tax calculations.
Important QCD rules
- You must be at least 70½ when the distribution is made.
- The funds must be transferred directly from an eligible IRA to a qualifying charitable organization, subject to limited special rules.
- Contributions to donor-advised funds, supporting organizations, and most private foundations do not qualify.
- You cannot exclude a QCD from income and also claim a charitable deduction for the same contribution.
- Special restrictions apply to certain IRA types, including ongoing SEP and SIMPLE IRAs.
Planning tip: If you are already taking RMDs and regularly contribute to charity, discuss QCDs with your tax advisor before requesting your next IRA distribution.
4. What Is the New $1,700 Scholarship Tax Credit Beginning in 2027?
Another significant charitable-giving opportunity begins January 1, 2027.
Under Internal Revenue Code Section 25F, eligible individual taxpayers may claim a new federal income-tax credit for qualifying cash contributions to approved Scholarship Granting Organizations (SGOs).
These organizations provide scholarships for eligible K–12 students.
How much is the credit?
The maximum annual federal credit is:
- $1,700 per eligible individual taxpayer.
- Up to $3,400 for married couples filing jointly, when both spouses meet the applicable contribution requirements.
Unlike a charitable deduction, a tax credit directly reduces federal income tax owed.
Here’s an example:
| Calculation | Amount |
| Federal income tax before credit | $8,000 |
| Qualifying scholarship tax credit | ($1,700) |
| Federal income tax after credit | $6,300 |
The credit is nonrefundable, meaning it generally cannot reduce your federal income-tax liability below zero.
Is the scholarship tax credit available in Florida?
Yes. Florida has elected to participate in the federal scholarship tax credit program beginning in 2027.
However, not every Florida nonprofit or educational organization automatically qualifies.
To be eligible, contributions must go to an approved Scholarship Granting Organization in a participating state.
These organizations must meet specific federal and state requirements, including qualifying public-charity status, scholarship administration standards, and student eligibility requirements.
A nonprofit that operates educational programs or summer camps does not automatically qualify as an SGO.
Florida’s participation creates the opportunity, but taxpayers should confirm that an organization has been approved before making a contribution intended to qualify for the credit.
Taxpayers are not necessarily limited to organizations in their state of residence. Contributions to approved SGOs in other participating states may also qualify.
Can you claim both the credit and a charitable deduction?
You cannot claim a charitable deduction for the same contribution amount used to calculate the federal scholarship credit.
Additionally, the federal credit may be reduced by certain state tax credits received for the same contribution.
Planning tip: If you plan to support K–12 education in 2027, investigate whether your preferred organization qualifies as an approved SGO and compare the available tax benefits before contributing.
5. How Do the New Charitable Giving Rules Affect Business Owners?
Business owners should also pay attention to the changes beginning in 2026.
For C corporations, charitable contributions generally become subject to a new floor equal to 1% of taxable income.
The existing 10% taxable-income ceiling remains in place.
Example:
Assume a C corporation has taxable income of $500,000 and makes $20,000 in qualifying charitable contributions.
| Calculation | Amount |
| Corporate taxable income | $500,000 |
| 1% charitable contribution floor | $5,000 |
| Total charitable contributions | $20,000 |
| Potential current-year deduction | $15,000 |
The deductible amount is subject to the corporation’s other applicable limitations.
Special carryforward provisions may apply to contributions exceeding the 10% ceiling and, in limited circumstances, amounts affected by the 1% floor.
What about S corporations and partnerships?
S corporations and partnerships generally pass charitable contributions through to their owners.
The individual owners then determine their allowable deductions under the applicable individual tax rules, including the new 0.5% floor when itemizing.
Additional limitations may apply at the owner level.
Planning tip: Business owners should consider charitable contributions as part of their overall year-end tax strategy rather than assuming every donation automatically creates a full deduction.
6. What Documentation Do You Need for Charitable Deductions?
Whether you are making a small cash donation or contributing valuable property, proper documentation is essential.
The IRS has specific substantiation requirements, and missing records can result in a denied deduction.
Here are the general requirements:
- Cash contributions of any amount: Maintain a bank record or written communication from the charitable organization showing the required information.
- Individual contributions of $250 or more: Obtain a contemporaneous written acknowledgment from the organization, including required information about any goods or services received.
- Noncash contributions exceeding $500: Form 8283 is generally required.
- Noncash contributions exceeding $5,000: A qualified appraisal is generally required, subject to exceptions.
The acknowledgment for contributions of $250 or more must generally be obtained by the earlier of the date you file your return or the filing deadline, including extensions.
Special rules apply to certain types of property, vehicles, securities, and other contributions.
Planning tip: Keep charitable receipts and acknowledgments throughout the year. Don’t wait until tax preparation season to discover that important documentation is missing.
7. Why Charitable Giving Should Be Part of Your Tax Planning
The changes beginning in 2026 demonstrate why charitable giving should be considered as part of a broader tax strategy.
Depending on your circumstances, the most beneficial approach may involve:
- Claiming the new deduction for non-itemizers.
- Grouping charitable contributions into selected tax years.
- Making Qualified Charitable Distributions directly from an IRA.
- Donating appreciated investments or other eligible property.
- Taking advantage of the new federal scholarship tax credit beginning in 2027.
- Coordinating corporate contributions with business income and tax planning.
There is no single strategy that works best for everyone.
Your income, filing status, age, retirement distributions, type of donation, and whether you itemize all play an important role.
With the end of 2026 approaching, now is the time to review your charitable giving plans. A decision made before December 31 could affect your tax outcome when you file your return in 2027.
The goal is not simply to give more or less. It’s to give thoughtfully, support the causes you value, and understand the tax implications before making your contributions.
Frequently Asked Questions About the 2026 Charitable Giving Changes
Can I deduct charitable donations if I take the standard deduction?
Yes. Beginning with the 2026 tax year, eligible taxpayers who do not itemize may deduct up to $1,000 in qualifying cash donations, or $2,000 for married couples filing jointly.
Noncash donations and contributions to donor-advised funds do not qualify for this particular deduction.
What is the new 0.5% charitable deduction floor?
Beginning in 2026, taxpayers who itemize generally may deduct only qualifying charitable contributions exceeding 0.5% of their adjusted gross income.
For example, if your AGI is $200,000, the first $1,000 of contributions generally does not produce an itemized charitable deduction for that year.
What is the QCD limit for 2026?
The annual Qualified Charitable Distribution limit is $111,000 per eligible IRA owner.
Married couples may potentially exclude up to $222,000 combined if each spouse separately qualifies.
The IRA owner must be at least 70½, and distributions must satisfy the applicable QCD requirements.
Is the new federal scholarship tax credit available in Florida?
Yes. Florida has elected to participate in the program beginning in 2027.
Eligible individuals may qualify for a federal income-tax credit of up to $1,700, or potentially $3,400 for married couples filing jointly, for qualifying cash contributions to approved Scholarship Granting Organizations.
Can a QCD go to a donor-advised fund?
No. Qualified Charitable Distributions generally cannot be made to donor-advised funds, supporting organizations, or private foundations.
They must be made to eligible charitable recipients under the applicable IRA distribution rules.
Can I deduct charitable donations made through my business?
Possibly. The treatment depends on how your business is taxed.
C corporations are generally subject to the new 1% floor and existing 10% ceiling, while contributions made by S corporations and partnerships generally pass through to their owners.
The ultimate deduction depends on the applicable limitations and individual circumstances.
How NES Tax & Accounting Can Help
At NES Tax & Accounting LLC, we believe effective tax planning goes beyond preparing an annual tax return.
We work with individuals, retirees, families, and business owners throughout Florida, from our offices in Plantation and Wellington, to identify opportunities, evaluate tax strategies, and make informed financial decisions before important deadlines.
Whether you’re considering a Qualified Charitable Distribution, planning a substantial charitable gift, or evaluating how the new rules affect your business, proactive guidance can help you understand your options.
If charitable giving is part of your financial plans, contact us to discuss how the new tax rules may affect you.
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Disclaimer: This article is intended for general informational purposes and does not constitute individualized tax, legal, or investment advice. Tax laws and individual circumstances vary. Information reflects Public Law 119-21 and available IRS guidance as of October 2026. Certain scholarship tax credit implementation rules remain subject to further guidance.
About the Author
Nidia C. Skokanic, E.A. is an IRS Enrolled Agent and Managing Director of NES Tax & Accounting LLC, serving clients from offices in Plantation and the Wellington area of Florida.
She advises individuals, families, retirees, and small to medium-sized businesses on tax compliance, planning, and IRS audit representation.
Nidia holds a Bachelor’s Degree in Accounting from the University of Colorado and began her professional career at Arthur Andersen. She is a member of the National Association of Enrolled Agents and the Florida Society of Enrolled Agents.
As an Enrolled Agent, she is federally authorized to represent taxpayers before the Internal Revenue Service.
Sources
- Public Law 119-21 (One Big Beautiful Bill Act), July 4, 2025, amendments to IRC §§ 170, 25F and 68.
- IRS, “More than half the U.S. states signed up to participate in the federal scholarship tax credit program,” IR-2026-76, June 8, 2026. irs.gov
- IRS, Federal Scholarship Tax Credit (FSTC). irs.gov/government-entities/federal-state-local-governments/federal-scholarship-tax-credit-fstc
- IRS Publication 526, Charitable Contributions; Publication 590-B, Distributions from IRAs (Qualified Charitable Distributions). irs.gov