The One Big Beautiful Bill Act (OB3) brings notable updates to charitable deduction rules, impacting both itemizers and non-itemizers. Starting in 2026, a new AGI-based threshold will limit deductions for higher-income taxpayers, while new benefits will allow lower- and middle-income filers to deduct donations without itemizing. Taxpayers should plan ahead to maximize their charitable giving before these changes take effect.
Key Points:
0.5% AGI threshold begins in 2026, reducing itemized charitable deductions.
New deduction for non-itemizers: up to $1,000 (single) or $2,000 (married).
2025 is the optimal year to make charitable gifts before new limits apply.
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