Tax law changes may make most Americans hold off on cash donations

Core Insights - Tax laws are changing significantly in 2026, impacting both itemizers and non-itemizers regarding charitable contributions [2] Group 1: Changes for Itemizers - Itemizers are advised to make charitable donations this year to maximize their deductions before the new rules take effect [3] - Starting in 2026, itemizers will face two major changes: a 0.5% adjusted gross income (AGI) floor for deductible contributions and a 35% cap on the tax benefit from itemized deductions for top earners [7] Group 2: Changes for Non-Itemizers - Non-itemizers, who represent about 90% of filers, are encouraged to delay charitable contributions until 2026 to take advantage of new deduction opportunities [3][6] - Beginning next year, non-itemizers can claim a deduction for cash donations up to $1,000 for single filers and $2,000 for couples filing jointly [8] - This new deduction mirrors the temporary deductions provided during the COVID-19 pandemic, which significantly increased charitable donations [9]