Taxpayers who donate regularly to charity are preparing to claim the charitable contribution deduction, which can lower taxable income, as they file for the 2025 tax year.
A charitable donation is a voluntary gift to a tax-exempt organization without receiving a benefit in return, such as money, property like a car or clothing, or certain volunteer expenses. The gift must not be set aside for individual use.
"Gifts to individuals, like GoFundMe campaigns for medical bills, don't qualify," said Gregory Monaco, CPA and founding principal at Monaco CPA, in an email. "For example, if you write a check to a church for a specific person, such as 'for the Johnson family' or the charity sends your donation to someone you pick, the IRS sees it as a personal gift, not a charitable contribution."
Tax-exempt organizations must meet IRS requirements and include U.S.-based charities, U.S. government entities, veterans' groups, fraternal societies, and nonprofit cemeteries.
Donations to qualified organizations are tax-deductible up to a percentage of adjusted gross income (AGI). Generally, up to 60% of AGI can be deducted, but limits may be 50%, 30%, or 20% depending on the contribution type and organization.
Filers can typically deduct the most for gifts to organizations in the IRS-defined "50% limit" category, such as churches, schools, hospitals, and other public charities. Deduction limits depend on whether the gift was cash or property and if the property has capital gains. If the limit is reached, deductions may be carried over for up to five years.
Filers who itemize deductions can claim the charitable donation tax deduction; it is not currently available for non-itemizers, but changes are expected for 2026. The IRS recommends itemizing if itemized deductions exceed the standard deduction or if required for other reasons.
To claim the deduction, taxpayers gather required documents. For cash contributions under $250, a bank statement, funds transfer receipt, canceled check, or payroll deduction records are needed; donations of $250 or more require a contemporaneous written acknowledgement (CWA) from the charity. For noncash gifts under $250, a detailed receipt is required; donations of $250 or more need a CWA and potentially additional forms. For out-of-pocket expenses under $250, a bank statement or receipt is used; claims of $250 or more require an acknowledgement.
Taxpayers check the organization's tax-exempt status using the IRS online tool, as organizations that fail to submit information for three consecutive years lose their status, making donations non-deductible.
"You can get a tax break for charitable donations only if your total itemized deductions are more than the standard deduction," noted Monaco. "About 90 percent of people do not go over the standard deduction limits, so their donations do not lower their federal taxes."
Filers include charitable donations on IRS Form 1040 Schedule A lines 11 and 12, with carryovers on line 13, and file by April 15 or request an extension.
The One Big Beautiful Bill Act brings changes for the 2026 tax year. Those taking the standard deduction can claim up to $1,000 in charitable contributions if filing single, or $2,000 if married filing jointly. If itemizing, charitable contributions are tax-deductible only if they exceed 0.5% of the filer's AGI.
The Tax Foundation provides an example: a taxpayer with $200,000 in AGI making $10,000 in charitable giving would not deduct the first $1,000, but the remaining $9,000 would be deductible.
For the 2025 tax year, charitable donations are deductible only if itemizing. Starting in 2026, single filers taking the standard deduction can claim up to $1,000, and married filing jointly up to $2,000. Itemizers will have new restrictions, deducting only donations exceeding 0.5% of AGI.