
Key Takeaways
- You may be able to claim a charitable deduction for donations you make to qualified organizations, including school district programs that are not operated for profit and are solely supported by state and local governments.
- Beginning in 2026, there are two possible tax deductions for donations to a school district program – an itemized deduction and a below-the-line deduction (only itemized deductions were available before the 2026 tax year).
- If you donate property not commonly sold to consumers, such as a piece of art, you may need to consult an appraiser in order to claim an itemized deduction for your donation (the below-the-line deduction is only available for cash donations).
- You must reduce the amount of the charitable deduction by the value of any property or services you receive from the school.
Are school district programs "qualified organizations" for purposes of charitable tax deductions?
For 2025, the IRS allows you to claim a deduction for the donations you make to qualified organizations. These organizations include more than just charities and will include any school district program that does not operate for profit and is solely supported by state and local governments. When you fill out your tax return this year, you can include all contributions you make to these schools as a deductible charitable contribution.
Starting with the 2026 tax year, you may be able to claim one of two deductions for donations you make to "qualified organizations" – an itemized deduction or a below-the-line deduction that is only for cash donations (only itemized deductions were available before 2026). These organizations include more than just charities and will include any school district program that does not operate for profit and is solely supported by state and local governments. So, when you fill out your tax return this year, you may be able to include contributions you make to these schools as a deductible charitable contribution.
The IRS maintains an online database of qualified organizations. Before making a donation, you should use the database to determine if the school you donated to is qualified organization.
How much of your donation to a school district program is deductible?
If you claim the itemized deduction for charitable contributions, the amount you can deduct is often equal to the value of all cash and property you donate to the school district programs – but certain limits may apply. For instance, cash donations are generally limited to 60% of your adjusted gross income (AGI). If you donate appreciated property you held for more than one year, your deduction is generally capped at 30% of your AGI. Other limitations may reduce your deduction, too. On the bright side, qualified donations in excess of these AGI limits can typically be rolled over to future years.
In addition, starting with the 2026 tax year, the itemized deduction for charitable donations is only available for contributions that exceed 0.5% of your AGI. So, for example, if you have $50,000 of AGI, only donations exceeding $250 ($50,000 x 0.005 = $250) are deductible. However, you can carry over the non-deductible amount to future years if you’re already carrying over unused donations because of one of the existing AGI-based limitations (such as the 60%-of-AGI limit for cash contributions).
As for the below-the-line deduction for charitable contributions, which is only available for cash donations to a qualified organization, you can only deduct the first $1,000 of eligible gifts ($2,000 for married couples filing a joint return).
How do you value property donated to a school district program?
If you're claiming the itemized deduction for charitable contributions, the federal tax law permits you to use any reasonable valuation method for most property donations as long as it assesses a value that relates to the price a willing buyer would pay for identical property in the open market.
For example, if you donate used clothing to the school, the IRS suggests that you refer to the price a local thrift shop charges for similar clothing in comparable condition. However, if you donate property not commonly sold to consumers, such as a piece of art, you may need to consult an appraiser.
In the event you need to hire an appraiser, the IRS prohibits you from increasing your charitable contribution deduction by the fee the appraiser charges you.
TurboTax Tip:
You will need to reduce your contribution amount by the value of anything that you receive in exchange for your donation.
What happens if you receive something in exchange for a charitable donation?
Inherent in a charitable contribution is the absence of any expectation to receive something in exchange for the donation. The IRS requires you to reduce the amount of the charitable deduction by the value of any property or services you receive from the school.
However, if the school provides you with a token gift of minimal value in appreciation for the donation, reducing your deduction is not necessary. In contrast, if you donate $5,000 worth of clothes and the school provides you with a $500 gift certificate to a local spa, you must reduce your deduction to $4,500.
How do you claim charitable contribution deductions?
You can claim the itemized deduction for charitable contributions on Schedule A.
The below-the-line deduction for charitable contributions will likely be reported directly on your 1040 form after the line that shows your AGI (it's called a "below-the-line" deduction because it's reported below the line for your AGI).
Which deduction you can take depends on whether you claim itemized deductions or the Standard Deduction (you can't claim both of them on the same return). To determine which option works best for you, total all of your itemized deductions and compare it your Standard Deduction. You generally want to go with whichever one is higher.
What's the tax credit for scholarship granting organizations?
While not a tax deduction, and not available until the 2027 tax year, the tax credit for donations to a scholarship granting organization (SGO) will provide a tax break for certain people who indirectly contribute to a school district program through an SGO.
The non-refundable tax credit is limited to $1,700 per year. However, any donations exceeding the maximum amount can be carried forward for up to five years. The credit is also reduced by any state tax credits received for the same donation.
An SGO has to satisfy several requirements for the credit to apply. Plus, the credit is only allowed if the SGO’s state chooses to participate in the credit program and provides a list of eligible SGOs in the state to the IRS. A list of participating states is on the IRS website.
Also note that you can’t use a donation to an SGO to claim both the tax credit and a charitable deduction (either the itemized or below-the-line deduction).
With TurboTax Expert Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Expert Assist.
And you can file your own taxes with TurboTax Do It Yourself. Easily start your taxes by adding your forms and answering a few simple questions, then we’ll guide you from there. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
Get started now by logging into TurboTax and file with confidence.


