One Big Beautiful Bill: Charitable Deduction for Non-Itemizers
Discover how you can deduct charitable donations if you take the Standard Deduction. The “One Big Beautiful Bill” revived the charitable deduction for non-itemizers, starting with the 2026 tax year. It’s a great way to cut your tax bill if you give money to charity but have enough deductions to itemize.
The One Big Beautiful Bill that passed includes permanently extending tax cuts from the Tax Cuts and Jobs Act, including increasing the cap on the amount of state and local or sales tax and property tax (SALT) that you can deduct, makes cuts to energy credits passed under the Inflation Reduction Act, makes changes to taxes on tips and overtime for certain workers, reforms Medicaid, increases the Debt ceiling, and reforms Pell Grants and student loans. Updates to this article are in process. Check our One Big Beautiful Bill article for more information.
Key Takeaways
- The "One Big Beautiful Bill" charitable deduction for non-itemizers is available beginning with the 2026 tax year.
- People who claim the Standard Deduction can deduct up to $1,000 of cash contributions to eligible organizations (up to $2,000 for joint filers).
- Eligible organizations generally include nonprofit groups with a religious, charitable, educational, scientific, or literary purpose.
- If you claim the charitable deduction for non-itemizers, keep a record that shows the donation's date, amount, and recipient.
What is the "One Big Beautiful Bill" charitable deduction for non-itemizers?
Starting with the 2026 tax year, the charitable deduction for non-itemizers allows people who don't claim itemized deductions on their federal income tax return to write off cash donations to charitable, religious, educational, and certain other organizations.
A similar deduction was temporarily allowed for the 2020 and 2021 tax years, but it was revived, improved, and made permanent by the "One Big Beautiful Bill" (OBBB) for 2026 and beyond. (The OBBB, which is also known as the Working Families Tax Cut, was signed into law on July 4, 2025.)
Except for 2020 and 2021, a deduction for charitable contributions was only available to people who claimed itemized deductions on their return before the OBBB reinstated this deduction (that is, it was only available to "itemizers"). But now, people who take the Standard Deduction – which is typically around 90% of all taxpayers – can also get a tax benefit for charitable donations once again.
How much is the charitable deduction for non-itemizers?
Beginning with the 2026 tax year, you can deduct up to $1,000 of cash contributions to an eligible organization if you take the Standard Deduction (up to $2,000 for married couples filing a joint return).
Donations above that amount during the year are not deductible. They also can't be carried forward to future tax years.
Who qualifies for the charitable deduction for non-itemizers?
As the name suggests, only people who don't itemize deductions on Schedule A can claim the charitable deduction for non-itemizers.
"You can claim either itemized deductions or the Standard Deduction on your federal income tax return – but not both," says Jeff Godwin, a CPA and TurboTax Expert in Carlsbad, California. "That means only people who take the Standard Deduction can claim the charitable deduction for non-itemizers."
What donations are eligible for the charitable deduction for non-itemizers?
Only cash donations to eligible organizations generally qualify for the charitable deduction for non-itemizers (more on eligible organizations in a minute). Non-cash donations – such as gifts of property or services – don't qualify for the deduction.
"Cash" donations include those paid by:
- check
- electronic funds transfer
- online payment service
- credit card
- debit card
- payroll deduction
Transferring a gift card redeemable for cash to an eligible organization counts as a cash donation, too.
What cash donations don't qualify for the charitable deduction for non-itemizers?
Two types of cash contributions don't qualify for the charitable deduction for non-itemizers – contributions that are either:
- carried forward from a previous tax year
- for a donor-advised fund
So, when might these restrictions apply?
First, the itemized deduction for cash donations is limited to 60% of your adjusted gross income (AGI). Cash contributions exceeding this limit, which you can't deduct in the current tax year, are carried forward and can be claimed as an itemized deduction in future tax years – but they can't be used toward the charitable deduction for non-itemizers.
Second, with a donor-advised fund, you contribute to the fund in one year, but it isn't paid out to charitable or other eligible organizations until future years. If you otherwise qualify, you get to claim the itemized deduction for charitable contributions for the tax year you contribute to the fund. However, "no contributions for the establishment of a new donor-advised fund, or for the maintenance of an existing one, can be used to claim the charitable deduction for non-itemizers," says Godwin.
What are "eligible organizations" for purposes of the charitable deduction for non-itemizers?
You can only claim the charitable deduction for non-itemizers if you make a cash donation to an eligible organization, which generally includes nonprofit organizations with a primary purpose that's either:
- charitable
- religious
- educational
- scientific
- literary
However, the list of eligible organizations that likely fall within one of these general categories is rather long. For example, the deduction is generally available for cash donations to nonprofit:
- charities (such as the United Way, Salvation Army, American Red Cross, etc.)
- churches, mosques, synagogues, temples, and other religious organizations
- schools (including K-12, colleges, and universities)
- hospitals and medical research facilities (such as St. Jude Children's Research Hospital, Shriners Children's Hospital, etc.)
- government entities servicing a public purpose (such as a local police or fire department)
- museums (such as the Smithsonian Institution, Metropolitan Museum of Art, etc.)
- youth organizations (Little League International, Scouting America, Boys & Girls Clubs of America, etc.)
- veteran's groups (such as the Wounded Warrior Project, Veterans of Foreign Wars (VFW), American Legion, etc.)
- fraternal societies, orders, and lodges (such as the Freemasons, Knights of Columbus, Moose Lodge, etc.)
What organizations can't receive contributions eligible for the charitable deduction for non-itemizers?
Cash donations to certain types of nonprofit organizations don't qualify for the charitable contribution deduction for non-itemizers, including contributions to:
- charitable "supporting organizations" (that is, a charity that supports other public charities and tax-exempt organizations)
- civic leagues (such as the League of Women Voters, National League of Cities, neighborhood civic organizations, etc.)
- social and sports clubs (such as country clubs, college fraternities and sororities, amateur sports leagues, etc.)
- labor unions
- chambers of commerce
- foreign organizations (except certain Canadian, Israeli, and Mexican charities)
- for-profit groups
- lobbyists
- homeowners' associations
- political groups
- candidates for public office
- individuals (including GoFundMe and similar campaigns)
TurboTax Tip:
"If you're not sure whether a donation to your favorite charity will be deductible, you can check the IRS's online database of organizations eligible to receive tax-deductible charitable contributions." – Jeff Godwin, CPA, Carlsbad, California
Can I claim the charitable deduction for non-itemizers if I receive something in exchange for my donation?
Typically, if you receive a benefit in exchange for a cash donation to an eligible nonprofit organization, you can only deduct the difference between your donation and the fair market value of the goods or services you receive.
Example: You pay $100 for a ticket to a dinner hosted by your favorite charity. The entire $100 goes to the charity. The meal you receive at the dinner is worth $35. You can only deduct $65 ($100 - $35 = $65) as a charitable contribution.
However, according to Godwin, “when making a charitable contribution, if you only receive a small item or 'token' benefit – think key chains, t-shirts, coffee mugs, and the like – you generally do not need to reduce your deduction by the value of the item received."
Your federal deduction for charitable donations can also be reduced if you receive (or expect to receive) a state or local tax credit or deduction in return. If you get a state or local tax credit, your federal charitable deduction is generally reduced by the credit amount. However, if the state or local tax credit isn't more than 15% of your donation, then your charitable deduction isn't reduced.
If you receive (or expect to receive) a state or local tax deduction in exchange for a donation, your federal charitable deduction is reduced only if the state or local deduction is greater than your cash donation.
What records do I need to keep to claim the charitable deduction for non-itemizers?
If you claim the charitable deduction for non-itemizers, you should keep a record of your cash donation that shows the date, amount, and recipient of the donation, such as a:
- receipt or letter from the organization that received the donation
- bank statement
- cancelled check
- credit card statement
- electronic funds transfer receipt
- payroll deduction record (such as a paystub, W-2 form, or other document provided by your employer)
In addition, if you give a single cash donation of $250 or more, you should also receive a "contemporaneous written acknowledgment" (CWA) from the recipient. It should include:
- the amount of your cash donation
- whether you received any goods or services as a result of your donation (other than certain token items or membership benefits)
- a description and the estimated value of the goods or services (if any) you received
If you make more than one donation of $250 or more, you should get either a separate CWA for each donation or one CWA that lists each donation.
The organization that received your donation should send the CWA by January 31 of the year following your donation. Keep this document with your other tax records.
How do I claim the charitable deduction for non-itemizers?
While the IRS hasn't released tax forms for the 2026 tax year yet, you will likely report the charitable deduction for non-itemizers directly on your 1040 form – that's where the deduction was reported for the 2020 and 2021 tax years.
Since it's a "below-the-line" deduction, it should also be reported somewhere below the line on your Form 1040 that shows your AGI. So, while it will reduce your taxable income, the charitable deduction for non-itemizers won't lower your AGI. That also means it can't help you qualify for other (or larger) tax breaks elsewhere on your return that have AGI-based eligibility requirements or phase-out rules – such as the Child Tax Credit, Earned Income Credit, or Senior Deduction, to name just a few.
How does the charitable deduction for non-itemizers differ from the itemized deduction for charitable contributions?
In addition to who can claim the deduction – people who itemize vs. people who take the Standard Deduction – there are several key differences between the itemized deduction for charitable contributions and the charitable deduction for non-itemizers. The following table illustrates some of the differences (starting with the 2026 tax year).
| Charitable Deduction Rules (2026) | Itemizers | Non-Itemizers |
|---|---|---|
| Only Cash Donations Deductible | ❌ | ✔️ |
| Gifts of Property Deductible | ✔️ | ❌ |
| AGI-Based Limits on Deduction | ✔️ | ❌ |
| Capped at $1,000 ($2,000 for joint filers) | ❌ | ✔️ |
| 0.5% of AGI Floor | ✔️ | ❌ |
| Carryover of Unused Deductions | ✔️ | ❌ |
| Contributions to Donor-Advised Funds | ✔️ | ❌ |
| Volunteer Expenses Deductible | ✔️ | ❌ |
| Report Deduction Directly on 1040 Form | ❌ | ✔️ |
| Report Deduction on Schedule A (Form 1040) | ✔️ | ❌ |
"Generally speaking, taxpayers who donate large amounts or contribute appreciated property often receive a greater tax benefit by itemizing deductions," says Godwin. "However, if your total itemized deductions are less than your Standard Deduction, you may be better off claiming the Standard Deduction and, if eligible, the charitable deduction available to non-itemizers."
How does the current charitable deduction for non-itemizers compare to the 2020 and 2021 deductions?
The new charitable deduction for non-itemizers (starting in 2026) has a higher maximum than both the 2020 and 2021 versions of the deduction.
| Tax Year(s) | Married Couples Filing Jointly | Married Couples Filing Separately | All Other Taxpayers |
|---|---|---|---|
| 2020 | $300 | $150 | $300 |
| 2021 | $600 | $300 | $300 |
| 2026 and beyond | $2,000 | $1,000 | $1,000 |
Related questions about the charitable deduction for non-itemizers
Q1: Did the "One Big Beautiful Bill" make other changes to the charitable deduction rules?
In addition to adding the charitable deduction for non-itemizers, the OBBB made other changes to the itemized deduction for charitable gifts. For instance, starting with the 2026 tax year, it imposes a 0.5% "floor" on charitable contributions for people who itemize. As a result, you can only deduct contributions to the extent they exceed 0.5% of your AGI for the year. Contributions that aren't deductible because of the floor can be carried over to future tax years. (Note: A 1% floor was also enacted for corporations.)
The 60% of AGI cap on cash gifts was also made permanent. It was scheduled to expire after the 2025 tax year.
In addition, the maximum itemized charitable deduction for certain whaling captains for reasonable and necessary whaling expenses was increased from $10,000 to $50,000. This increase also begins with the 2026 tax year.
Finally, the OBBB created a new federal tax credit of up to $1,700 for contributions to a "scholarship granting organization" that uses the money for scholarships for eligible in-state students. The credit is available starting with the 2027 tax year.
Check out other changes made by the "One Big Beautiful Bill."
Q2: Can people who volunteer for a charitable organization deduct out-of-pocket expenses if they take the Standard Deduction?
While volunteers may be able to deduct certain unreimbursed expenses if they claim the itemized deduction for charitable contributions, they can't deduct those out-of-pocket expenses if they take the Standard Deduction. That's because the charitable deduction for non-itemizers is only available for cash contributions, which doesn't include the unreimbursed expenses of volunteers.
See what volunteers for a charitable organization can (and can't) deduct if they itemize.
Q3: How long should I keep records of my cash donations?
If you claim the charitable deduction for non-itemizers, you should keep receipts and other records related to your cash donation for at least three years after filing your return and/or paying your taxes for the year you made the donation. That timeframe corresponds with the statute of limitations for IRS audits and assessments, and to file an amended tax return to claim a refund.
Learn more about how long you should keep tax returns and records.
Let a local tax expert matched to your unique situation get your taxes done 100% right with TurboTax Expert Full Service. Your expert can work with you in real time and maximize your deductions, finding every dollar you deserve, guaranteed.
You can also file taxes on your own with TurboTax Do It Yourself Deluxe. We’ll search over 350 deductions and credits so you don’t miss a thing.
Get started now by logging into TurboTax and file with confidence.
