This Year, Keep Those Donation Receipts
Hi Friendos,
This condo treasurer spent a big chunk of her day working on financial analysis for her building, so today you are getting a quick tax tip about a change in tax law for charitable giving.
In a prior newsletter, I said it is (effectively) a myth that charitable donations are tax-deductible (except for the super-rich). That is because the vast majority of people take the standard deduction when they file their tax returns; they do not itemize. I gave a detailed explanation of these mechanics in this newsletter. Well, effective this year there is a new “above-the-line” deduction for charitable giving, up to $1,000, available to taxpayers who itemize. As the IRS states:
“Beginning with tax year 2026, if you do not itemize, you may deduct up to $1,000 ($2,000 if filing jointly) of your cash contributions to certain qualified organizations.”
So perhaps you never bothered to save gift acknowledgement letters or got a receipt from Goodwill. This year, it’s worth hanging on to those backup docs in case you are audited. If you gave $1,000 (or more), and your marginal tax rate is 22%, the deduction reduces your taxable income by $1,000, saving you $220 in tax.
Give from the heart and save those receipts!
-Stephanie
Frequently Taxed Questions 