ACTEC Trust & Estate Talk Your Income Tax Charitable Deductions Are Different in 2026
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Jan 6, 2026 Christopher Hoyt, a law professor at the University of Missouri and ACTEC Fellow, delves into significant tax changes coming in 2026. He highlights how new charitable deduction rules will affect high-income taxpayers and older donors. The introduction of a non-itemizer deduction and a new tax credit for K–12 scholarship charities is explored. Hoyt contrasts IRA giving with itemized strategies, emphasizing the advantages of Qualified Charitable Distributions (QCDs) for donors over 70½ to maximize tax benefits.
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Non-Itemizer Charitable Deduction Appears
- The 2026 law adds a limited charitable deduction for non-itemizers: $1,000 single, $2,000 married joint for cash gifts.
- Donor-advised funds, private foundations, and non-cash items like clothing do not qualify and $250+ gifts need contemporaneous receipts.
New K–12 Scholarship Tax Credit
- The law creates a federal tax credit for cash gifts to state-certified K–12 scholarship-granting organizations.
- Credits are limited ($1 individual, $3,400 married joint) and require state certification and residency rules.
Temporary SALT Expansion Boosts Itemizing
- Temporary SALT changes increase the itemizer share from ~10% to ~14% by allowing up to $40,400 deduction in 2026.
- High earners face a phase-out starting at $500,000 and full loss above $600,000.