Tax Strategies

The recently updated Individual Investor's Guide to Personal Tax Planning for 2025–2026 highlights some important shifts in how charitable contributions may be treated for tax purposes starting in 2026 and it's worth thinking through what that might mean for your own giving strategy.

What's changing?
Under the new OBBBA rules, cash contributions can only be deducted by itemizers, and the limits for what can be deducted are being revised:

• For those who take the standard deduction, there will be the ability to deduct up to $1,000 of charitable cash contributions (or $2,000 if married filing jointly).

• For those who itemize, charitable deductions will only be allowed to the extent they exceed 0.5% of your contribution base, effectively creating a floor below which gifts won't provide any tax benefit.

• Importantly, any contributions that don't qualify for a deduction under the new rule can still be carried forward for up to five years.

The article also reminds us about Qualified Charitable Distributions (QCDs), which allow individuals age 70½ or older to direct up to $108,000 from a traditional IRA to a qualified charity, lowering your Required Minimum Distributions (RMDs) while bypassing taxable income.

So here's the question:
👉 With these 2026 OBBBA changes on the horizon, how might this influence when and how you choose to donate, especially if you typically itemize or make QCDs?

A few things to consider as you think about your response:

• Will you accelerate charitable contributions into 2025 to lock in deductions under the current rules?

• If you usually itemize, do the new 0.5% floor rules make you rethink how much you give each year or whether you might take the standard deduction instead?

• For retirees or those approaching retirement, are QCDs becoming a more attractive tool to meet both giving goals and RMD requirements?

If you haven't yet read the full article or the overall Tax Guide, I highly recommend doing so before replying. There's a lot of valuable context on tax planning impacts across investments, retirement accounts, and other key areas that tie directly into this change.

Read the full article now.

The recently updated Individual Investor's Guide to Personal Tax Planning for 2025–2026 highlights some important shifts in how charitable contributions may be treated for tax purposes starting in 2026 and it's worth thinking through what that might mean for your own giving strategy.

What's changing?
Under the new OBBBA rules, cash contributions can only be deducted by itemizers, and the limits for what can be deducted are being revised:

• For those who take the standard deduction, there will be the ability to deduct up to $1,000 of charitable cash contributions (or $2,000 if married filing jointly).

• For those who itemize, charitable deductions will only be allowed to the extent they exceed 0.5% of your contribution base, effectively creating a floor below which gifts won't provide any tax benefit.

• Importantly, any contributions that don't qualify for a deduction under the new rule can still be carried forward for up to five years.

The article also reminds us about Qualified Charitable Distributions (QCDs), which allow individuals age 70½ or older to direct up to $108,000 from a traditional IRA to a qualified charity, lowering your Required Minimum Distributions (RMDs) while bypassing taxable income.

So here's the question:
👉 With these 2026 OBBBA changes on the horizon, how might this influence when and how you choose to donate, especially if you typically itemize or make QCDs?

A few things to consider as you think about your response:

• Will you accelerate charitable contributions into 2025 to lock in deductions under the current rules?

• If you usually itemize, do the new 0.5% floor rules make you rethink how much you give each year or whether you might take the standard deduction instead?

• For retirees or those approaching retirement, are QCDs becoming a more attractive tool to meet both giving goals and RMD requirements?

If you haven't yet read the full article or the overall Tax Guide, I highly recommend doing so before replying. There's a lot of valuable context on tax planning impacts across investments, retirement accounts, and other key areas that tie directly into this change.

Read the full article now.