Key Takeaways
- Starting with 2026, a married couple who takes the standard deduction can also deduct up to $2,000 of cash gifts to qualified charities. A single filer can deduct up to $1,000.
- For a couple in the 12% bracket, $2,000 of cash gifts cuts this year’s federal income tax by $240.
- A retired couple at 66 who doesn’t itemize is too young to give straight from an IRA at 70½, so this is the only federal tax break on their giving.
- Only cash counts, including checks and credit card gifts. Money put into a donor-advised fund doesn’t count, and the gifts have to be made by Dec. 31 to count for 2026.
If you and your spouse take the standard deduction, the checks you write to charity this year can lower your federal tax. They couldn’t do that last year.
For a lot of retired couples, up to $2,000 of cash gifts could take $240 off this year’s bill. And there’s still time to make them.
Too young for the IRA route
Let’s say, hypothetically, you and your spouse are both 66 and retired. You take the standard deduction, since your mortgage interest, medical bills and other itemized deductions don’t add up to more than it. And you give to your church and the local food bank every year.
Through last year, those gifts didn’t lower your tax at all. Only people who itemized on Schedule A could deduct charitable gifts, and itemizing didn’t make sense for you.
You’re also too young for the break a lot of older retirees use for their giving. A qualified charitable distribution goes straight from an IRA to a charity tax-free, but only IRA owners 70½ or older can make one. At 66, you’re four and a half years away from it.
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Up to $2,000 on top of the standard deduction
Starting this year, you get a break on those gifts anyway. Beginning with tax year 2026, a filer who doesn’t itemize can deduct up to $1,000 of cash gifts to certain qualified charities, or up to $2,000 on a joint return.
Andy Panko listed it among what’s new for 2026 in a year-end tax planning episode of the Retirement Planning Education podcast on Nov. 5. And he made a point couples will want to hear: “It doesn’t need to be $1,000 per spouse, just as a combined couple, you two collectively, can deduct up to $2,000 of cash donations made to qualifying charities on top of in addition to your standard deduction.”
“Cash” covers more than bills. A check to a charity counts, and so does a gift charged to a credit card, as Panko pointed out. Gifts of stock or of things like clothes and furniture don’t count, and neither does money you put into a donor-advised fund.
How $2,000 becomes $240
The deduction comes off your taxable income, so the tax you save depends on your bracket. Let’s say your taxable income as a couple comes to $60,000 this year, after the standard deduction. For 2026, a married couple filing jointly pays 12% on taxable income over $24,800 and up to $100,800, so you’re well inside that bracket.
Give $2,000 in cash to charity, and your taxable income falls to $58,000. All $2,000 would otherwise have been taxed at 12%, so your federal income tax drops by $240.
The same $2,000 is worth more in a higher bracket. A couple with $150,000 of taxable income is in the 22% bracket, so $2,000 of gifts saves them $440. A single filer in the 12% bracket can deduct up to $1,000, which saves $120.
Make the gifts by Dec. 31
A gift has to be made this year to count on this year’s return. A check counts on the day you mail it. A gift charged to a credit card counts in the year of the charge, even if you pay the bill in January.
The deduction is capped at $2,000, so a couple who already gives $5,000 a year in cash still saves $240 in the 12% bracket. If you usually give stock, or give through a donor-advised fund, you’d need to send at least $2,000 straight to a charity in cash to get the break.
Frankly, $240 won’t make or break anyone’s retirement. But if you were going to give that money anyway, there’s no reason to leave the deduction on the table. Once you reach 70½, you’ll also be able to give straight from your IRA, and those gifts count toward that year’s required minimum distribution.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
