You may have just filed your tax return and are now thinking about what the rest of the year looks like. Here are some possibilities to consider:
Generosity gets a break, no itemizing necessary: Beginning 2026, even if you take the standard deduction, you can deduct up to $1,000 ($2,000 for married couples filing jointly) of qualifying charitable contributions. Several things to remember about this new rule:
- Only cash donations apply: checks, credit card charges, online donations and payroll deductions.
- You must have a written acknowledgement from the charity if you donate $250 or more.
- The donation must be made to a qualified 501(c)(3) public charity such as Northwest Maritime.
- This deduction does not apply to contributions to donor-advised funds.
If you’re thinking about maximizing your charitable giving while also lowering your taxes, consider donating the full allowable amount. And check with your employer—many have matching gift programs. You could potentially double your impact.
The 35% ceiling and the .5% floor. If you’re in the 37% federal income tax bracket, your tax benefits are capped at 35 cents for every dollar you donate. If you itemize and want to take a charitable deduction, your donation must be above the 0.5% floor of your adjusted gross income (AGI). For example, if your AGI is $200,000, only gifts above $1,000 will be deductible. Consider bunching gifts: combine several years’ worth of donations into one tax year to clear the deduction floor. And look at your non-cash assets: donating appreciated stock, real estate, etc. may help you exceed the .5% floor and avoid capital gains tax, depending on your circumstances.
There are more new rules that can impact your tax return this time next year. Learn more at https://www.irs.gov/taxtopics/tc506. Always consult your tax advisor for the best options for yourself and the causes you care about. And thank you for supporting transformative maritime experiences!
