ACTEC Trust & Estate Talk Your Charitable Income Tax Breaks Are Changing in 2025 and 2026
Nov 4, 2025
Professor Christopher Hoyt, a law professor at the University of Missouri and ACTEC Fellow, discusses significant tax changes affecting charitable deductions for 2025 and 2026. He outlines new above-the-line deductions for non-itemizers, the raised SALT cap, and how older donors can maximize benefits through IRA gifts. Hoyt explains why younger donors should favor appreciated stock and shares year-end planning strategies, highlighting the importance of bunching gifts into donor-advised funds. Overall, it’s a vital guide for navigating upcoming tax changes.
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Delay Small Cash Gifts To Jan 2026
- Defer small cash gifts into January 2026 if you take the standard deduction to claim a new above-the-line deduction.
- Only cash gifts qualify and donor-advised funds, private foundations, and supporting organizations are excluded.
Higher SALT Cap Alters Itemizing Rates
- Raising the SALT cap to $40,000 in 2025 will push many more taxpayers into itemizing and change charitable planning.
- The $40,000 cap phases out above $500,000 and disappears above $600,000, limiting benefits for very high earners.
Give From IRAs If Over Age 7.5
- Use IRAs for charitable gifts if the donor is over age 7.5 to exclude distributions from taxable income via QCDs.
- QCDs avoid the new itemized deduction limits and remain the simplest route for older donors.