Many people aim to write checks to their favorite charities sometime before Dec. 31, as part of year-end giving. Yet, key tax changes mean you could want to shake things up in 2025.
This year, some quirky new tax rules mean that one group of tax filers might want to give more money in 2025 than they planned. And another group could be better off pushing their cash donations into January.
Yep, nothing is simple when it comes to the new rules in the One Big Beautiful Bill Act, which was signed into law by President Donald Trump on July 4.
What to do if you don’t itemize
We’re looking at two distinct tax scenarios for charitable giving in 2025. It boils down to whether you itemize deductions or take the standard deduction, as most tax filers do.
Beginning in 2026, tax filers who claim the standard deduction may be allowed to take a new above-the-line deduction for cash contributions to qualifying charities. You will not need to itemize deductions to claim this new tax break.
The new deduction — which would apply to your 2026 federal income tax return that’s filed in 2027 — is limited to $1,000 for single filers and $2,000 for married couples filing jointly, per year. Experts say there is no provision to adjust these amounts for inflation.
“This deduction is only available for cash contributions made to qualified charitable organizations, excluding donor-advised funds and supporting organizations,” said Tom O’Saben, enrolled agent and director of tax content and government relations for the National Association of Tax Professionals.
But remember, this new tax break will not apply to your 2025 return. So, some tax planners are recommending that some who take the standard deduction write checks to charities in 2026, instead of rushing to give in late 2025.
George Smith, a certified public accountant with Andrews Hooper Pavlik in Bloomfield Hills, said tax filers who don’t itemize — and he’s one of the non-itemizers — need to be aware of the new $1,000 and $2,000 deduction for non-itemizers beginning in 2026.
Those making donations can give the money by cash, credit card or check in 2026 to be able to claim a deduction for a charitable donation.
Elizabeth Young, director of tax practice and ethics with the American Institute of CPAs, pointed out that cryptocurrency, including bitcoin, is not considered “cash” for this deduction. Donating bitcoin would be treated as a non-cash property donation and subject to different rules.
Young also noted that non-cash donations, like donating clothing or other goods, will not qualify for the new tax deduction for non-itemizers.
