Charitable tax deductions may rise this year
Recent tax law changes will increase deductions for charitable contributions for some donors this year.
Here is a high-level summary
Starting this year, single filers who don’t itemize their contributions (about 90% of taxpayers) can claim a deduction for up to $1,000 in charitable contributions and joint filers can claim up to $2,000 on their tax returns. This is an increase from the $300/$600 amounts last year. This is a great incentive for folks to donate directly to FPN (contributions to donor advised funds don’t qualify) and get an extra tax benefit.
There’s a new adjustment for taxpayers who do itemize deductions. Starting with 2026 tax returns, they will have to reduce their deduction for charitable contributions by .05% of their “contribution base”. For example, if the “contribution base’ is $100,000, they may only deduct up to $9,500 in charitable contributions they make. The “contribution base” is generally defined the same as “adjusted gross income”. This slight reduction does complicate matters, but should not have a significant impact for most taxpayers.
While we are on the subject of taxes, we are pleased to note that the new law does NOT change the rules for “qualified charitable distributions.” (“QCD”). Taxpayers who have reached age 70.5 can make a QCD of up to $111,000 this year. The QCD is an amount paid directly from your IRA to a qualified charity, like FPN. A QCD is a great way to make charitable contributions and also counts toward your “required minimum distribution” for the year.
This is only general information about the new law, which makes many other changes that may affect your taxes. You should always check with your tax adviser on these matters.
Tax-Savvy Ways to Give
There are several tax-advantaged ways to invest in our mission today and in the future:
- Donor-Advised Funds (DAFs): Recommend a grant now with potential tax benefits.
- Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can donate tax-free from your IRA—while satisfying your Required Minimum Distribution (RMD)—but it’s not taxed.
- Bequests and beneficiary designations: Include FPN in your will, trust, or as a beneficiary of your retirement or life insurance plan.
- Gifts of appreciated stock or real estate: Avoid capital gains while advancing our mission.
- Donate now: Make a tax-deductible gift online today.
Get more information on including the Foundation for Peripheral Neuropathy in your estate plans and other ways to give, on our website or email us at [email protected].
This information is for informational purposes only. Please consult your tax prep expert for your individual needs and advice.
