New BENEFIT for standard deduction filers: It used to be only people who itemize gets to enjoy some tax benefit for their giving. From 2026 on, you can deduct up to $1,000 ($2,000 for married filing jointly) for CASH gifts made directly to qualified charities. Thanks for your generosity!
For itemizers, new limit is imposed: only the portion of your charitable giving above 0.5% of your income will be deductible. If your AGI is $100,000, the first $500 you give will not be deductible.
For a corporate doner, the new threshold is 1% of its income.
Donations made by small businesses formed as partnership, LLCs and S-corporations will flow though to the individual tax returns of the partners or shareholders. The donation is not deductible at the company level. That did NOT change.
