New tax rules change how much Americans can deduct from donations

(NewsNation) — New taxation rules nether the Trump medication look to alteration however overmuch Americans tin deduct from their charitable donations and could extremity up costing nonprofits millions of dollars.

President Donald Trump’s "big, beauteous bill” — present instrumentality — makes the accrued modular deduction permanent, but besides adds thing new: a cosmopolitan charitable deduction for non-itemizers.

Starting successful 2026, idiosyncratic taxpayers tin deduct up to $1,000 successful currency donations and $2,000 if they're filing jointly arsenic a joined couple, adjacent if the mates doesn’t itemize. This marks a large displacement from erstwhile rules, which lone gave a taxation interruption to the apical 3rd of filers.

But successful bid to money that caller deduction, high-income donors present look limits. If a payer itemizes, the archetypal half-percent of their donations is not deductible. As for Americans successful the apical taxation bracket, their deduction volition beryllium capped astatine 35% alternatively of 37%.

While the rules are framed arsenic helping mean Americans, experts person told NewsNation the changes could person a costly interaction connected nonprofits successful areas similar art, higher acquisition and infirmary foundations, arsenic galore of these groups person historically relied connected large donors.

"I deliberation the tides are going to shift. A batch of these charities are going to absorption their energies connected mom-and-pop donating tiny dollars,” said Ted Jenkin, a spouse astatine Exit Wealth. “So yes, and not connected large companies, due to the fact that determination are phase-outs for corporations and immoderate of their deductions volition beryllium disallowed, and determination are phase-outs for affluent earners."

The IRS is expected to contented last guidance connected these rules by mid-August.