From Kiplinger · · 1m 30s
144 Million Get Charitable Tax Break
New tax rule lets 144 million standard deduction filers deduct up to $1,000 or $2,000 for cash donations.
In brief
New tax rule lets 144 million standard deduction filers deduct up to $1,000 or $2,000 for cash donations. Non-itemizing U.S. households can now claim a charitable tax deduction of up to $1,000 for single filers or $2,000 for joint filers under the 2025 Trump tax bill. Originally reported by Kiplinger.
New Tax Break for Standard Filers
The 2025 Trump tax bill allows non-itemizers to claim a charitable tax deduction of up to $1,000 for single filers or $2,000 for married couples filing jointly.
144 Million Taxpayers Eligible
According to Empower data, roughly 90% of U.S. households claim the standard deduction, expanding the tax break to an estimated 144 million taxpayers.
Strict Rules Apply
Only cash contributions count, and there are no carryforwards. Donations must be to a qualified 501(c)(3) public charity.
What Counts as Cash
Direct cash contributions including checks, credit cards, debit cards, or electronic transfers are eligible up to the $1,000/$2,000 cap.
Non-Deductible Items
Appreciated stocks, mutual funds, cryptocurrency, household items, vehicles, real estate, and volunteer expenses are non-deductible.
Tax Savings Calculation
A joint-filing couple with $200,000 AGI could save $440 by claiming the $2,000 deduction in the 22% tax bracket.
State Tax Implications
Taxpayers in states like Idaho, North Dakota, and South Carolina may indirectly capture savings on state income returns.
Record-Keeping Requirements
Taxpayers must retain written communication, bank statements, or electronic receipts for up to seven years to claim the deduction.
What matters most
Non-itemizing U.S. households can now claim a charitable tax deduction of up to $1,000 for single filers or $2,000 for joint filers under the 2025 Trump tax bill.
