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Charitable Deductions for Retirees: Itemizing, AGI Limits and the 2026 Rules

Josh Rendler, CFP®

Creator of Motion Retirement

Updated 2026-10-12 · Tax year 2026 · Figures checked October 10, 2026 · How this is checked

Do my charitable donations lower my taxes in retirement?

Only in some years. It works if you itemize (costs like charity gifts you list one by one on your return instead of the flat amount). Your list has to beat the standard deduction (the flat amount most people can subtract from income without listing costs). From 2026, people who don't itemize can also deduct cash given straight to a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts). The cap is $1,000, or $2,000 on a joint return. If you do itemize, there are caps. They run 20% to 60% of AGI (your total income minus a few set subtractions, the number many tax rules start from). And only gifts above 0.5% of AGI count.

  • Giving lowers tax only if you itemize and top the standard deduction. Exceptions: the new cash deduction and QCDs (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit). Giving stock held over a year skips tax on the gain, but its deduction still needs itemizing.
  • 2026: deduct up to $1,000 ($2,000 joint) without itemizing. Cash only, to a public charity. Donor-advised funds and supporting organizations (a charity set up to help one or more specific public charities) don't count.
  • Itemized gifts are capped at 20% to 60% of AGI. The cap depends on what you give and who gets it. Anything over the cap can generally be used in the next five years.
  • From 2026, itemized gifts count only above 0.5% of AGI. A trim applies if your taxable income (the part of your income that tax rates are actually charged on), with your itemized deductions added back in, reaches the 37% bracket. Each dollar fully hit saves about 35 cents, not 37.
  • At 70½ or older, a QCD sends money straight from your IRA to charity. Up to $111,000 per IRA owner in 2026 stays out of your income. It works whether or not you itemize. By my reading, the 2026 deduction limits don't shrink it.
Jump to a question

A gift to charity lowers your federal income tax only in some years.

The rule below mentions IRMAA (an extra Medicare charge you pay when your income is above a set line).

To deduct a gift the usual way, you must itemize on Schedule A.1 You get either your itemized deductions or the standard deduction, not both.2 Itemized deductions lower your taxable income, but not your AGI.34 So they don’t lower measures built on AGI, like the income used for IRMAA.4

There are three exceptions. First, from 2026 you can deduct a little cash without itemizing. Three words in the rule below have narrow tax meanings: supporting organization, property (anything you own other than cash, such as stock or a fund, not just a house), and carryover (the part of a gift too big to deduct this year, saved for up to five later years).

From 2026, if you don’t itemize, you can deduct up to $1,0005 of cash gifts, or $2,0005 on a joint return.5 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.67 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.6 It lowers your taxable income, but not your AGI.8

Second, at 70½ or older you can send money straight from your IRA to charity. That’s a QCD, and it isn’t a deduction at all. Left out of income before AGI, so it can't also be deducted.910. Third, you can give stock you’ve held more than a year instead of selling it. A gift isn’t a sale, so you have no gain to report.11 The deduction itself still needs itemizing. And if you also give cash and you itemize, you give up that new cash deduction.

Many retirees give every year and get almost no tax break for it. From 2026 they can deduct a small amount of cash. Above that cap, more cash giving changes nothing until their gifts get big enough to make itemizing win. Giving shares can still help if they would otherwise have sold them. A QCD can help whether or not they itemize. That isn’t a mistake on the return. It’s how the standard deduction works. It’s the most important fact on this page.

This guide is for people 60 and older who give to charity. It covers when a gift is deductible, how much you can deduct, the records you need, and what changed for 2026. If you’re 70½ or older with an IRA, see the guide to giving from your IRA too.

Related video Age 59 Tax Moves to Make BEFORE You Retire · the most common charitable misunderstanding I see

Charitable deduction rules at a glance

Four things changed for 2026. Each one has its own section below.

Item 2025 2026
Cash deduction without itemizing None Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.5678
Floor on itemized gifts None From 2026, itemized gifts count only above 0.5% of AGI.121314
Trim on itemized deductions in the top bracket None From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.1516
Cash cap for public charities 60% of AGI, set to end after 2025 60% of AGI, with no end date17

The 2026 changes page goes through all of them. Two other pages cover the choices retirees ask about most. One is putting several years of gifts into one year. The other is what happens to gifts over the AGI limit.

Do I have to itemize to deduct charitable donations?

Usually, yes.

To deduct a gift the usual way, you must itemize on Schedule A.1 You get either your itemized deductions or the standard deduction, not both.2 Itemized deductions lower your taxable income, but not your AGI.34 So they don’t lower measures built on AGI, like the income used for IRMAA.4

So itemizing only helps when your list adds up to more. There’s one exception starting in 2026. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.5678. It leaves out gifts to a supporting organization.6

What is the standard deduction for retirees in 2026?

In 2026, the standard deduction is $32,20025 for a married couple filing jointly and $16,10025 for a single filer. Each married spouse 65 or older adds $1,65025. A single person 65 or older adds $2,05025, unless they are a surviving spouse.

So a married couple who are both 65 or older start at $35,500. If they give cash straight to public charities, itemizing also costs them the cash deduction for non-itemizers. By my reading, their itemized deductions then have to top the standard deduction plus that amount before itemizing helps. The break-even figure below shows the full hurdle.

Does the senior deduction depend on itemizing?

No. This is the senior deduction (an extra deduction for people 65 and older from 2025 through 2028), and you get it either way.

For 2025 through 2028, each person 65 or older by year end gets an extra $6,00026 deduction.2627 You get it whether or not you itemize.26 Married couples must file jointly, and each person needs a Social Security number on the return.27 It shrinks by $626% of modified AGI above $75,00026, or $150,00026 on a joint return.26 On a joint return, the cut comes off each spouse’s amount, so a couple who both qualify lose $120 per $1,000 over.28

The income used here is MAGI (your AGI with a few things added back, used by rules like Medicare's charge). Because you get it either way, it doesn’t change whether you itemize. What it does change is the value of a lower AGI. In the range where it shrinks, a lower AGI lets you keep more of it. By my reading, each person’s amount is gone once MAGI runs $100,000 past the start of that range. That’s $250,000 on a joint return, or $175,000 otherwise. Above there, a lower AGI gives none of it back.26

A QCD is left out of your income, so it lowers AGI directly. In the range where the senior deduction shrinks, that keeps more of it. A lower AGI also shrinks the new floor on gifts, described below. The 2026 changes page covers who qualifies.

Why don’t my charitable donations reduce my taxes?

The most common reason is that your standard deduction is bigger than your itemized deductions. Then you take the standard deduction, and your gifts make no difference.

Take a married couple who are both 65 or older and give at least $2,0005 in cash straight to public charities. Their itemized deductions have to top $37,500 in 2026. That’s the standard deduction plus the cash deduction they’d give up. With less cash, or none, the hurdle is lower.

Three other reasons come up often:

  1. The new floor (2026 and later). This is the 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible). With $140,000 of AGI, the first $700 of gifts gives no deduction. From 2026, itemized gifts count only above 0.5% of AGI.121314.
  2. The yearly caps. A very large gift can go over the cap for that kind of gift. The extra isn’t lost. Carries forward up to five years, under the same cap.293031. See carryforwards.
  3. Missing paperwork. A gift without the required receipt or appraisal can be thrown out in full. Two papers can matter: a charity receipt (the written receipt a charity gives you for a large gift, needed before you file) and Form 8283 (the tax form you add when you deduct gifts of things other than cash, like stock). The receipt rule: A written charity receipt for gifts of $250 or more, in hand by the day you file.323334. The form rule: Form 8283 if non-cash gifts top $500 for the year.3536373839.
Worked example · tax year 2026Will this couple's giving lower their tax?
Assumptions
  • Married filing jointly; both spouses are 65 or older.
  • AGI is $140,000, below the point where the senior deduction starts to shrink.
  • They give $15,000 in cash to public charities (no donor-advised fund).
  • Other itemized deductions: $10,000 of state and local taxes, assumed fully deductible. No mortgage.
  • Federal only; no other deductions.
  • Both are 65 or older with AGI under $150,000, so each gets the full $6,000 on either path.

Path A: itemize

Step Amount
Cash gifts $15,000
Less 0.5% floor (0.5% × $140,000) −$700
Deductible charitable gifts $14,300
Plus state and local taxes $10,000
Total itemized deductions $24,300
Plus senior deduction (2 people) $12,000
Total deductions, Path A $36,300

Path B: standard deduction

Step Amount
Standard deduction, MFJ $32,200
Plus additional 65+ amount (2 × $1,650) $3,300
Plus non-itemizer cash gift deduction (capped) $2,000
Plus senior deduction (2 people) $12,000
Total deductions, Path B $49,500

Path B is bigger by $13,200. Of the $15,000 they gave, only $2,000 changes their tax.

How much would they have to give before itemizing wins? Their itemized deductions would have to top $37,500. That’s the standard deduction plus the cash deduction they’d give up. After $10,000 of state and local taxes, their gifts would need to top $27,500 after the floor. Add back the $700 floor, and that means gifts above $28,200.

For a couple like this, people often look at two options. One is bunching (giving several years of gifts in one year so they are big enough to deduct), which means putting several years of gifts into one year. The other is giving through QCDs once a spouse who owns an IRA is 70½ or older. Which fits depends on their ages, what they give, and how steady their income is.

Is it worth giving more just to get the deduction?

Usually not, if the deduction is the only reason. A deduction gives back only your tax rate on the gift. So each extra dollar you give still costs you most of a dollar.

The way I look at it, the deduction lowers the cost of giving you already planned to do. It isn’t a reason to give on its own.

Take the couple above. Say they were already itemizing, so an extra gift did lower their tax. On that path their taxable income is $103,700. That sits in the 22%40 bracket for 2026. So the next slice of gifts would save that share of each dollar. Give enough and later dollars drop into a lower bracket, saving less. In their real case the extra gift saves nothing. They take the standard deduction. And they have already used the full $2,000 cash deduction.

How much can I deduct for charitable donations?

Up to 60% of your AGI in one year, for cash given to public charities. Other kinds of gifts have lower caps. The cap depends on two things: what you give, and who gets it. The two kinds of charity in the caps are public charities and private foundations (a charity funded mostly by one person, family or company, not a public charity). These are the AGI percentage limits (caps on how much charity giving you can deduct in one year, based on your income).

Cash given to public charities can be deducted up to 60% of your AGI each year.17 That 60% room is reduced by your other gifts to public charities the same year.17 That 60% cap no longer has an end date.17 Stock held over a year, given to a public charity, is capped at 30% of AGI.18 Other gifts to public charities are capped at 50% of AGI.19 That 50% is a cap on your public-charity gifts together, so cash you gave that year uses up part of it.19 Gifts to most private foundations are capped at the lesser of 30% of AGI or what’s left of the 50% room.2021 For stock held over a year, the cap is 20% of AGI. It can be lower: only what’s left of the 30% stock room.22 Stock given to a public charity is counted after your other gifts.2324 That same stock given to most private foundations is counted last of all.22

The yearly caps and the 0.5% floor are shares of your AGI, figured without any net operating loss carryback.41 So a lower AGI also lowers the caps.41

Here are the same caps laid out by gift and by charity:

What you give To a public charity To most private non-operating foundations
Cash 60% of AGI 30% of AGI
Stock or other investments held more than a year that grew in value 30% of AGI 20% of AGI — Generally what you paid; publicly traded stock gets full value.4243
Other non-cash gifts 50% of AGI 30% of AGI

The percentages cap how much you can deduct. They do not set the value you start from. For a gift of investments that grew in value to most private foundations, that value is usually what you paid. Generally what you paid; publicly traded stock gets full value.4243. Here is that rule in full:

Stock that grew, given to most private foundations, is generally deducted at what you paid.42 Stock traded on a public market is the exception and counts at full value.42 Full value counts only up to 10% of that company’s stock.42 Your earlier gifts and your family’s gifts count toward that 10%.43

Three things matter in practice:

  • Some foundations get the public charity caps. Private operating foundations do. So do a few special kinds of foundations that pass gifts on.19 Most family foundations are the other kind. They fall in the right-hand column.
  • Stock held a year or less counts at cost or less. Its value on the day you give it, if held more than one year.444546474849. The guide to giving shares covers this.
  • A big mixed year needs the worksheet. The caps interact. So a year with a big cash gift and a big stock gift needs the worksheet in IRS Publication 526.
For CPAs and attorneysWhere the percentage limits come from

The 60% cash limit is § 170(b)(1)(G), now without a sunset. The 50% limit is § 170(b)(1)(A), which also covers private operating foundations and the § 170(b)(1)(F) conduit and pooled-fund foundations. The 30% limit on capital gain property to 50% organizations is § 170(b)(1)(C), counted after all other contributions except the § 170(b)(1)(D) gifts, which come last. Gifts to other organizations fall under § 170(b)(1)(B) (30%) and § 170(b)(1)(D) (20% for capital gain property). The (B) limit is reduced by contributions to 50% organizations. The (D) limit is the lesser of 20%, or 30% less § 170(b)(1)(C) capital gain gifts.19 23 20 22

Can I deduct 100% of my charitable donations?

Not in one year, for most retirees. The highest common cap is 60% of AGI, for cash given to public charities. The part over the cap isn’t lost. Carries forward up to five years, under the same cap.293031. And in a year you itemize, the first 0.5% of AGI in gifts isn’t deductible. From 2026, itemized gifts count only above 0.5% of AGI.121314.

What is the 0.5% AGI floor for charitable deductions?

From 2026, if you itemize, your gifts count only above 0.5% of your AGI.12 By my reading, the floor comes off after the yearly AGI caps.13 It comes off in a set order, starting with gifts under the 20% cap and ending with cash to public charities.14

With $200,000 of AGI, the first $1,000 of gifts isn’t deductible. Give $10,000, and you can deduct $9,000. The floor doesn’t apply to the cash deduction for people who don’t itemize.6

Most of the time, the floor amount is just gone.

Gifts lost to the 0.5% floor carry over only from a year when gifts went over a yearly AGI cap.52 Even then, only the floor amount tied to the kind of gift that went over joins the carryover.53 Otherwise, the amount lost to the floor is gone.52

More on the 2026 changes page.

What is the new charitable deduction for people who don’t itemize?

From 2026, if you don’t itemize, you can deduct up to $1,0005 of cash gifts, or $2,0005 on a joint return.5 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.67 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.6 It lowers your taxable income, but not your AGI.8

Its formal name is the non-itemizer charitable deduction (a 2026 deduction for cash gifts to charity, even if you skip itemizing). Gifts to most private foundations don’t count either, because they aren’t the kind of charity this deduction covers. A few special kinds, such as operating foundations, do.6 19

When does a gift count for this year?

A gift is deducted in the year you pay it.54 A mailed check counts on the day you mail it, if it clears.5556 A gift on a credit card counts in the year you make the charge.55 A stock certificate you sign over counts the day you deliver or mail it to the charity.5756 Stock sent through your own broker or the company counts only when it is moved into the charity’s name.57

IRA firms and brokers set their own year-end cutoffs. Moving shares can take days, so it’s worth checking with yours early.

What records do I need for a charitable deduction?

Every cash gift needs a record, at any size. It can be a bank record or a written note from the charity.58 Gifts of $25059 or more also need a written receipt from the charity. Without them, the deduction can be thrown out in full.

A canceled check or a statement works as the bank record. Either record has to show the charity’s name, the date, and the amount.58 By my reading, one receipt usually serves as both records.

The tax term for the charity’s receipt is a contemporaneous written acknowledgment.

A gift of $25059 or more needs a written receipt from the charity.33 It must give the cash amount, or describe any property, and say whether you got anything back.3332 If you did, it must describe it and estimate its value.33 You must have it by the day you file, or your return’s due date plus any extension you got, whichever comes first.3432

For gifts other than cash, you may need a form and an appraisal. The form is Form 8283.

If your deduction for non-cash gifts tops $50036 for the year, you attach Form 8283.35 Stock traded on a public market goes in Section A, at any amount.36 Say your deduction for other property is more than $5,00036.37 Then you generally need a qualified appraisal, and the gift goes in Section B.3736 For stock that isn’t publicly traded, the appraisal starts above $10,000, though Section B still applies.39 For the $5,00036 amount, similar items you gave count as one gift.38

Is a QCD better than a charitable deduction?

For many IRA owners 70½ or older who give cash, a QCD often comes out ahead. It doesn’t in every case.

A QCD is left out of your income, so it never reaches your AGI.910 Because of that, you can’t also deduct it as a charitable gift.9 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.9

So a QCD works whether or not you itemize, and it lowers AGI. There’s a yearly cap. $111,000 per IRA owner in 2026 ($108,000 in 2025).606162. By my reading, the 0.5% floor doesn’t touch it, because the floor acts only on deductions.

Only money that would otherwise be taxed can be a QCD.63 A qualified Roth withdrawal is already tax-free, so it can’t be one.6463

Deducted IRA contributions for years ending once you’re 70½ or older shrink the QCD you can leave out of income.65 It shrinks dollar for dollar, minus amounts that already shrank earlier QCDs.65

See who can do a QCD. A QCD also has to be a gift you could have fully deducted.

A QCD must be a gift you could fully deduct if it weren’t a QCD.59 By my reading, a benefit you get back, like a dinner, can stop it from counting.59 A small token item doesn’t count. That holds if the charity correctly decides it isn’t worth much and says the gift is fully deductible.66 The AGI caps on deductions don’t count for this test.67 For a QCD of $25059 or more, you need the same charity receipt a deduction needs.59

Once you reach the age for your yearly required IRA withdrawal, a QCD counts toward it. That’s your RMD (the least you must take out of a regular IRA each year once you reach a set age). Counts toward your RMD for the year.6869. 73 or 75, depending on birth year.7071. If you were born before 1951, those withdrawals started under the older rules.71 See QCDs and RMDs.

A deduction can still win for gifts of appreciated stock (stock or fund shares now worth more than you paid for them) that has grown a great deal. You avoid tax on the gain, and you may get a deduction too. Which comes out ahead depends on how much the stock has grown, whether you itemize, and your tax bracket. See stock vs. QCD.

Common mistakes

  • Thinking every gift is deductible. If you take the standard deduction, only the small cash deduction counts. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.5678.
  • Funding a donor-advised fund and expecting the cash deduction for non-itemizers. The law leaves those gifts out.7
  • Forgetting the floor in a big year. The floor applies every year you itemize, even a year you bunch gifts. From 2026, itemized gifts count only above 0.5% of AGI.121314.
  • Giving stock to a private foundation and expecting the 30% cap. For most private foundations it’s 20%, and it can be less. Generally what you paid; publicly traded stock gets full value.4243.
  • Filing before the receipt arrives. A written charity receipt for gifts of $250 or more, in hand by the day you file.323334.
  • Waiting until late December to give stock. If your own broker moves the shares, the gift isn’t done until they reach the charity’s name.57

Sources (71)

Show

  1. To deduct charitable contributions in the ordinary way, an individual must itemize on Schedule A.

    • IRS Publication 526 (2025), DeductionsGenerally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). Checked 2026-10-09.

  2. No itemized deduction is allowed unless the individual elects to itemize for the year; the taxpayer takes either itemized deductions or the standard deduction.

    • 26 U.S.C. § 63 (LII), § 63(e)(1)Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. Checked 2026-10-10.

  3. Itemized deductions (including the ordinary charitable deduction) are, by definition, deductions other than those allowable in arriving at adjusted gross income, so they reduce taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(d)the term “ itemized deductions ” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income Checked 2026-10-10.

  4. AGI is gross income minus the deductions listed in § 62(a). Itemized deductions are, by definition, the deductions other than those allowable in arriving at AGI, and taxable income is gross income minus the deductions allowed. So an itemized charitable deduction (including one for a gift to a donor-advised fund or of appreciated stock) reduces taxable income but not AGI, and therefore not MAGI measures built on AGI, such as the IRMAA MAGI (AGI plus tax-exempt interest).

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(d)For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income, and (2) any deduction referred to in any paragraph of subsection (b). Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(a)Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction). Checked 2026-10-10.

  5. Beginning in 2026, taxpayers who do not itemize may deduct up to $1,000 ($2,000 joint) of cash gifts to § 170(b)(1)(A) public charities, excluding gifts to supporting organizations and donor-advised funds.

    • 26 U.S.C. § 170 (LII), § 170(p)the deduction under this section shall be equal to the deduction, not in excess of 1,000 ($2,000 in the case of a joint return) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, P.L. 119-21 § 70424(a)substituted “$1,000 ($2,000” for “$300 ($600” Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70424(b)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  6. The non-itemizer deduction counts only cash contributions made during the year to § 170(b)(1)(A) organizations, not to § 509(a)(3) supporting organizations or for a new or existing donor-advised fund, and is computed without carryovers and without the 0.5% floor.

    • 26 U.S.C. § 170 (LII), § 170(p)which would be determined under this section if the only charitable contributions taken into account in determining such deduction were contributions made in cash during such taxable year (determined without regard to subsections (b)(1)(G)(ii), (b)(1)(I), and (d)(1)) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(p)(1)-(2)to an organization described in section 509(a)(3), or (2) for the establishment of a new, or maintenance of an existing, donor advised fund Checked 2026-10-09.

  7. The § 170(p) deduction for non-itemizers (cash gifts, beginning 2026) does not apply to contributions for the establishment or maintenance of a donor-advised fund, or to § 509(a)(3) supporting organizations.

    • 26 U.S.C. § 170 (LII), § 170(p)(2)(2) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) ). Checked 2026-10-09.

  8. For a taxpayer who does not itemize, taxable income is AGI minus the standard deduction and other listed deductions, including the § 170(p) non-itemizer charitable deduction. That deduction therefore reduces taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(b)the term “ taxable income ” means adjusted gross income , minus— (1) the standard deduction , (2) the deduction for personal exemptions provided in section 151, (3) any deduction provided in section 199A, (4) the deduction provided in section 170(p), Checked 2026-10-09.

  9. A QCD is excluded from gross income and cannot also be claimed as a charitable deduction. Only the portion that would otherwise be taxable can be a QCD; when an IRA has nondeductible basis, the QCD is treated as coming first from the taxable (pre-tax) money, overriding the normal pro-rata rule.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(E)shall not be taken into account in determining the deduction under section 170. Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(D)Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsIf your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsYou can't claim a charitable contribution deduction for any QCD not included in your income. Checked 2026-10-09.

  10. Adjusted gross income means, for an individual, gross income minus the deductions listed in § 62(a), so an amount excluded from gross income never enters AGI.

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-12.

  11. Gain is measured by the amount realized on a sale or other disposition over adjusted basis, so a donor who gives appreciated shares to charity instead of selling them realizes nothing and reports no capital gain.

    • 26 U.S.C. § 1001 (LII), § 1001(a)The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized. Checked 2026-10-11.

  12. Starting in 2026, itemized charitable deductions are allowed only to the extent total contributions exceed 0.5% of the taxpayer's contribution base (AGI). Disallowed amounts may carry forward only in limited circumstances (new § 170(d)(1)(C) — not reviewed).

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70425(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  13. The 0.5% floor applies to charitable contributions 'otherwise allowable (without regard to this subparagraph)' as a deduction, i.e., read here as the amount allowable after the percentage-of-AGI limits. This ordering is the reviewer's reading of the statute text; no IRS worked example was located.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.

  14. The 0.5% floor is applied first against 20%-limit capital gain gifts, then 30% capital gain gifts, then 30%-limit (other) gifts, then conservation gifts, then 50% gifts, and last against 60% cash gifts.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(i)first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(vi)sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof. Checked 2026-10-09.

  15. Starting in 2026, taxpayers in the 37% bracket have itemized deductions (including charitable) reduced by 2/37 of the lesser of total itemized deductions or taxable income above the 37% bracket threshold — effectively capping the tax value of a deduction at 35 cents per dollar. The "35% cap" is a shorthand, not statutory language.

    • 26 U.S.C. § 68 (LII), § 68(a)shall be reduced by 2 ⁄ 37 of the lesser of Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), Effective date note, P.L. 119-21 § 70111(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  16. The § 68 reduction is 2/37 of the lesser of (1) itemized deductions or (2) taxable income, computed before § 68 and increased by itemized deductions, above the start of the 37% bracket. It is applied after every other limitation on itemized deductions (including the 0.5% floor and the AGI percentage limits).

    • 26 U.S.C. § 68 (LII), § 68(a)(2)so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions ) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), § 68(b)This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. Checked 2026-10-09.

  17. Cash gifts to § 170(b)(1)(A) organizations are limited to 60% of the contribution base (reduced by other § 170(b)(1)(A) contributions). P.L. 119-21 § 70425(b)(1) rewrote the provision and removed the prior 'before January 1, 2026' end date, so the 60% limit no longer sunsets.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i) (as amended)For taxable years beginning after December 31, 2017 , any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i)(I)60 percent of the taxpayer’s contribution base for the taxable year, over Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, 2025—Subsec. (b)(1)(G)(i)Pub. L. 119–21, § 70425(b)(1) , amended cl. (i) generally. Prior to amendment, text read as follows: “In the case of any contribution of cash to an organization described in subparagraph (A), the total amount of such contributions which may be taken into account under subsection (a) for any taxable year beginning after December 31, 2017 , and before January 1, 2026 , shall not exceed 60 percent Checked 2026-10-09.

  18. Long-term appreciated capital-gain property given to a public charity is generally deductible at fair market value, limited to 30% of AGI; cash gifts to public charities are limited to 60% of AGI. Excess carries forward up to 5 years. Property held 1 year or less (ordinary income property) is limited to basis because the deduction is reduced by gain that would not be long-term.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)shall not exceed 30 percent of the taxpayer’s contribution base for such year. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i)(I) 60 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(d)(1)(A)paid in each of the 5 succeeding taxable years in order of time Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(1)(A)the amount of gain which would not have been long-term capital gain Checked 2026-10-09.
    • IRS Publication 526 (2025), Ordinary Income Propertycapital assets (defined later, under Capital Gain Property ) held 1 year or less. Checked 2026-10-09.

  19. Contributions to § 170(b)(1)(A) organizations (public charities, and the operating/pass-through/pooled private foundations described in § 170(b)(1)(F)) are generally limited to 50% of the contribution base, before the special 60% cash rule and the 30% capital-gain-property rule.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A), flush languageshall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)a private foundation described in subparagraph (F), Checked 2026-10-09.

  20. Contributions to organizations not described in § 170(b)(1)(A) (for example, most private non-operating foundations) are limited to the lesser of 30% of the contribution base or the remaining room under the 50% limit.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)(i)30 percent of the taxpayer’s contribution base for the taxable year, or Checked 2026-10-09.

  21. Gifts to organizations not covered by § 170(b)(1)(A), such as most private non-operating foundations, are deductible up to 30% of the contribution base (lower than the 60% cash limit for public charities, including DAF sponsors).

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— (i) 30 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-10.

  22. Gifts of capital gain property to organizations not described in § 170(b)(1)(A) (e.g., most private non-operating foundations) are limited to the lesser of 20% of the contribution base or 30% less capital gain property gifts under § 170(b)(1)(C), and are counted last.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i)(I)20 percent of the taxpayer’s contribution base for the taxable year, or Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i), flush languageFor purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions . Checked 2026-10-09.

  23. Gifts of long-term capital gain property to § 170(b)(1)(A) organizations (deducted at fair market value) are limited to 30% of the contribution base and are counted after other contributions except 20%-limit gifts.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions (other than charitable contributions to which subparagraph (D) applies). Checked 2026-10-09.

  24. The 30%-of-AGI limit on capital gain property given to public charities is applied after all other charitable contributions (other than those under § 170(b)(1)(D)); the excess carries forward 5 years.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(ii)such excess shall be treated, in a manner consistent with the rules of subsection (d)(1), as a charitable contribution of capital gain property to which clause (i) applies in each of the 5 succeeding taxable years in order of time. Checked 2026-10-09.

  25. 2026 standard deduction: $32,200 married filing jointly, $16,100 single or married filing separately, $24,150 head of household. Additional amount for age 65+ or blind: $1,650 per qualifying person if married, $2,050 if unmarried and not a surviving spouse. (2025 under OBBBA: $31,500 / $15,750 / $23,625.)

  26. For 2025 through 2028, each taxpayer (and spouse on a joint return) age 65+ by year end gets an extra $6,000 deduction, available whether or not they itemize, reduced by 6% of modified AGI above $75,000 ($150,000 joint). Married couples must file jointly; a valid SSN is required.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(i)In the case of a taxable year beginning before January 1, 2029 , there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual Checked 2026-10-09.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(I)shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VYou can claim this deduction whether you claim the standard deduction or itemize deductions Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VIf you are married, you must file a joint return with your spouse to claim this deduction. Checked 2026-10-09.

  27. The senior deduction's 'qualified individual' is the taxpayer (and, on a joint return, the spouse) who has attained age 65 before the close of the taxable year; the qualified individual's Social Security number must be on the return; married individuals must file jointly; the phaseout uses AGI increased only by foreign-income exclusions (§§ 911, 931, 933), so income excluded from gross income, such as a QCD, does not count.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(ii)the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and (II) in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(II)the term “ modified adjusted gross income ” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iv)(I)Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual ’s social security number on the return of tax for the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(v)this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. Checked 2026-10-10.

  28. On Schedule 1-A, the 6% phaseout of the senior deduction is computed once from modified AGI and subtracted from each qualifying spouse's $6,000 separately; the two reduced amounts are then added. On a joint return, each $1,000 of MAGI above the threshold therefore reduces the couple's combined senior deduction by $120.

  29. Contributions above the AGI limits carry over for up to 5 years (15 for qualified conservation contributions) and generally keep the same percentage limit in the carryover year.

    • IRS Publication 526 (2025), Carryoversyou may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Checked 2026-10-09.
    • IRS Publication 526 (2025), CarryoversGenerally, contributions you carry over are subject to the same percentage limits in the year to which they are carried as they were in the year of the contribution. Checked 2026-10-09.

  30. Qualified conservation contributions over their AGI limit carry over for 15 succeeding years, not 5.

    • 26 U.S.C. § 170(b)(1)(E)(ii), § 170(b)(1)(E)(ii)such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 15 succeeding years in order of time. Checked 2026-10-10.

  31. Within each category, current-year contributions are deducted before carryovers, and older carryovers are used before newer ones.

    • IRS Publication 526 (2025), CarryoversFor each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first. Checked 2026-10-09.

  32. A contemporaneous written acknowledgment must state the amount of cash contributed, whether the charity provided any goods or services in return, and a description and good-faith estimate of the value of any such goods or services (or a statement that they consisted solely of intangible religious benefits). It is contemporaneous if obtained by the earlier of the date the return is filed or the return's due date including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i) The amount of cash and a description (but not value) of any property other than cash contributed. (ii) Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). (iii) A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  33. The contemporaneous written acknowledgment for a gift of $250 or more must state the cash amount or describe (not value) property, say whether the charity provided goods or services in return, and estimate their value. It is contemporaneous if obtained by the earlier of the filing date or the extended due date.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i)The amount of cash and a description (but not value) of any property other than cash contributed. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(ii)Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(iii)A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  34. A charity receipt (contemporaneous written acknowledgment) counts only if obtained by the earlier of the date the return is filed or the return's due date, including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-10.

  35. If total noncash contribution deductions for the year exceed $500, Form 8283 must be attached (Section A for items of $5,000 or less and publicly traded securities; Section B with a qualified appraisal for items over $5,000).

    • IRS Publication 526 (2025), Filing requirements, Form 8283If your total deduction for all noncash contributions for the year is over $500, you must complete Form 8283 and attach it to your Form 1040. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property Checked 2026-10-09.

  36. Form 8283 is required when the deduction for a noncash gift (or group of similar items) exceeds a dollar threshold set in the instructions; publicly traded securities are reported in Section A regardless of amount (no Section B appraisal); other property over the higher threshold goes in Section B. Basis need not be entered for publicly traded securities held over 12 months unless the basis election is made.

    • Instructions for Form 8283 (Rev. 12/2025), Who Must FileYou must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Specific Instructions, Section A, SecuritiesFor donations of publicly traded securities in any amount, you should only use Section A. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Requirement to fully complete Sections A and BFilers reporting a noncash charitable contribution of over $5,000 must fully complete Section B. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Section A, Column (g)Do not complete this column for publicly traded securities held more than 12 months, unless you elect to limit your deduction cost basis. See section 170(b)(1)(C)(iii). Checked 2026-10-09.

  37. For contributions of property for which a deduction of more than $5,000 is claimed, the donor generally must obtain a qualified appraisal; the requirement does not apply to readily valued property such as cash and publicly traded securities. Other exceptions exist in the regulations (not reviewed here).

    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal Checked 2026-10-10.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(A)(ii)(I)publicly traded securities (as defined in section 6050L(a)(2)(B)), and any qualified vehicle Checked 2026-10-10.

  38. The qualified appraisal requirement is keyed to the deduction claimed, not the property's value: it applies to contributions of property for which a deduction of more than $5,000 is claimed. In applying that threshold, the property and all similar items of property donated to one or more donees are treated as one property.

    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property and attaches to the return for the taxable year in which such contribution is made such information regarding such property and such appraisal as the Secretary may require. Checked 2026-10-11.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(F)For purposes of determining thresholds under this paragraph, property and all similar items of property donated to 1 or more donees shall be treated as 1 property. Checked 2026-10-11.

  39. A qualified appraisal is not required for a contribution of nonpublicly traded stock when the deduction claimed is more than $5,000 but not more than $10,000; above $10,000 the general qualified-appraisal requirement applies. The gift is still reported in Section B of Form 8283, which covers property for which a deduction of more than $5,000 per item or group of similar items is claimed.

    • 26 C.F.R. § 1.170A-13 (LII), § 1.170A-13(c)(2)(ii)(B)(1)The contribution of nonpublicly traded stock, if the amount claimed or reported as a deduction for the charitable contribution of such stock is greater than $5,000 but does not exceed $10,000; Checked 2026-10-11.
    • Instructions for Form 8283 (IRS), Which Sections To CompleteUse Section B to report donations of property for which you claimed a deduction of more than $5,000 per item or group of similar items. Checked 2026-10-11.

  40. 2026 federal income tax brackets (ordinary income). Married filing jointly: 10% to $24,800; 12% to $100,800; 22% to $211,400; 24% to $403,550; 32% to $512,450; 35% to $768,700; 37% above. Single: 10% to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above.

    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Not over $24,800 10% of the taxable income Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $24,800 but not over $100,800 $2,480 plus 12% of the excess over $24,800 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $100,800 but not over $211,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $211,400 but not over $403,550 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $403,550 but not over $512,450 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $512,450 but not over $768,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Not over $12,400 10% of the taxable income Over $12,400 but not over $50,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $50,400 but not over $105,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $105,700 but not over $201,775 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $201,775 but not over $256,225 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $256,225 but not over $640,600 Checked 2026-10-09.

  41. The percentage limits are measured against the 'contribution base', which for individuals is AGI computed without any net operating loss carryback.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(H)the term “ contribution base ” means adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172 ). Checked 2026-10-09.

  42. Capital gain property given to most private (nonoperating) foundations is deductible only at basis, except 'qualified appreciated stock' (publicly traded stock that is capital gain property, subject to a 10% ownership limit), which keeps a fair-market-value deduction. Capital gain property gifts to these organizations are limited to 20% of AGI (or, if less, 30% of AGI minus 30%-category capital gain gifts).

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(B)(ii)(ii) to or for the use of a private foundation (as defined in section 509(a) ), other than a private foundation described in subsection (b)(1)(F), Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(A)Subparagraph (B)(ii) of paragraph (1) shall not apply to any contribution of qualified appreciated stock . Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(B)for which (as of the date of the contribution) market quotations are readily available on an established securities market, and (ii) which is capital gain property Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)Donor may not contribute more than 10 percent of stock of corporation Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i)(I) 20 percent of the taxpayer’s contribution base for the taxable year, or (II) the excess of 30 percent of the taxpayer’s contribution base for the taxable year over the amount of the contributions of capital gain property to which subparagraph (C) applies. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain Property, ExceptionsThe property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations; Checked 2026-10-09.

  43. The 10 percent limit on qualified appreciated stock is cumulative and aggregated: stock is not qualified appreciated stock to the extent the amount contributed, increased by the aggregate amount of all prior such contributions by the donor of stock in that corporation, exceeds 10 percent in value of all of the corporation's outstanding stock; and the donor is treated as making all contributions made by any member of the donor's family.

    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(i)In the case of any donor, the term “qualified appreciated stock” shall not include any stock of a corporation contributed by the donor in a contribution to which paragraph (1)(B)(ii) applies (determined without regard to this paragraph) to the extent that the amount of the stock so contributed (when increased by the aggregate amount of all prior such contributions by the donor of stock in such corporation) exceeds 10 percent (in value) of all of the outstanding stock of such corporation. Checked 2026-10-11.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(ii)For purposes of clause (i), an individual shall be treated as making all contributions made by any member of his family (as defined in section 267(c)(4)). Checked 2026-10-11.

  44. Capital gain property is a capital asset that would have produced long-term capital gain if sold at fair market value on the date of the gift; for stock this generally means held more than 1 year.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(iv)the term “ capital gain property ” means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain PropertyCapital gain property includes capital assets held more than 1 year. Checked 2026-10-09.

  45. For property held 1 year or less, the deduction is reduced by the gain that would not have been long-term, so the deduction is generally the lower of basis or fair market value.

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(A)the amount of gain which would not have been long-term capital gain (determined without regard to section 1221(b)(3) ) if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution) Checked 2026-10-09.
    • IRS Publication 526 (2025), Ordinary Income Propertycapital assets (defined later, under Capital Gain Property ) held 1 year or less. Checked 2026-10-09.

  46. If donated property is worth less than its basis, the deduction is limited to fair market value and the loss is not deductible.

    • IRS Publication 526 (2025), Giving Property That Has Decreased in ValueIf you contribute property with an FMV that is less than your basis in it, your deduction is limited to its FMV. You can’t claim a deduction for the difference between the property’s basis and its FMV. Checked 2026-10-09.

  47. Publicly traded stock is valued at the average (mean) of the highest and lowest quoted selling prices on the valuation date (date of the gift).

    • IRS Publication 561 (Rev. 12/2025), Stocks and Bonds, Selling prices on valuation datethe FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. Checked 2026-10-09.
    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)the mean between the highest and lowest quoted selling prices on the valuation date is the fair market value per share or bond. Checked 2026-10-09.

  48. If there were no sales of the security on the valuation date but there were sales within a reasonable period both before and after it, fair market value is a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)If there were no sales on the valuation date but there were sales on dates within a reasonable period both before and after the valuation date, the fair market value is determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date. Checked 2026-10-12.

  49. When there were no sales on the valuation date, the average of the means on the nearest trading date before and the nearest trading date after is weighted inversely by the number of trading days between each selling date and the valuation date, so the nearer trading date carries more weight.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)The average is to be weighted inversely by the respective numbers of trading days between the selling dates and the valuation date. Checked 2026-10-12.

  50. The recipient must be a § 170(b)(1)(A) organization. Donor-advised funds and § 509(a)(3) supporting organizations are excluded by statute. Private non-operating foundations are excluded because they are not § 170(b)(1)(A) organizations (only foundations described in § 170(b)(1)(F) — operating, pass-through, and pooled-fund — are listed).

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)(other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-35other than supporting organizations described in § 509(a)(3) or donor advised funds that are described in § 4966(d)(2). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)(vii) a private foundation described in subparagraph (F), Checked 2026-10-09.

  51. A 'charitable contribution' under § 170(c)(2) must go to an organization created or organized in the United States or a possession, or under US, state or DC law. Because a QCD must be one for which a deduction for the entire distribution would be allowable under § 170, a gift paid directly to a foreign organization generally cannot be a QCD.

    • 26 U.S.C. § 170 (LII), § 170(c)(2)(A)(A) created or organized in the United States or in any possession thereof, or under the law of the United States Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 Checked 2026-10-10.

  52. An amount disallowed by the 0.5% floor carries forward only from a year in which a percentage limit is also exceeded (so that an excess is carried forward anyway); in that case the floor-disallowed amount is added to the carryover. In a year where the AGI limits are not exceeded, the floor-disallowed amount is simply lost.

    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C), headingContributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C)(i)In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule , the applicable carryover rule shall be applied by increasing the excess Checked 2026-10-09.

  53. Under § 170(d)(1)(C), in a year from which an excess is carried forward under a carryover rule (determined without regard to the floor), that carryover is increased by the amount attributable to the contributions to which that rule applies that was disallowed by the 0.5% floor. Floor-disallowed amounts attributable to a category with no excess are not added.

    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C)(i)In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule , the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). Checked 2026-10-09.

  54. A charitable deduction is allowed for the taxable year in which the contribution is paid. For a DAF, that is the year the donor contributes to the fund, regardless of when grants are later made to charities (grants are distributions by the sponsor, not contributions by the donor).

    • 26 U.S.C. § 170 (LII), § 170(a)(1)There shall be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year. Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphOnce the donor makes the contribution, the organization has legal control over it. Checked 2026-10-09.

  55. A gift counts in the year it is unconditionally delivered: a mailed check in the year it is mailed, and a gift charged to a bank credit card in the year of the charge.

  56. A charitable contribution is ordinarily made when delivery is effected. A check counts on the date mailed or delivered if it clears; a stock certificate delivered to the donor's own bank or broker (as the donor's agent) or to the issuer for transfer is a completed gift only on the date the stock is transferred on the corporation's books.

    • 26 CFR § 1.170A-1 (LII), § 1.170A-1(b)Ordinarily, a contribution is made at the time delivery is effected. The unconditional delivery or mailing of a check which subsequently clears in due course will constitute an effective contribution on the date of delivery or mailing. Checked 2026-10-10.
    • 26 CFR § 1.170A-1 (LII), § 1.170A-1(b)If the donor delivers the stock certificate to his bank or broker as the donor's agent, or to the issuing corporation or its agent, for transfer into the name of the donee , the gift is completed on the date the stock is transferred on the books of the corporation . Checked 2026-10-10.

  57. An endorsed stock certificate is delivered on mailing; if handed to the donor's agent or the issuer for transfer, the gift is not complete until transfer on the corporation's books.

    • IRS Publication 526 (2025), When To Deduct, Stock certificateA properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity’s agent. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution isn’t delivered until the date the stock is transferred on the books of the corporation. Checked 2026-10-09.

  58. No deduction is allowed for a contribution of cash, a check, or other monetary gift unless the donor keeps a bank record or a written communication from the charity showing the charity's name, the date of the contribution, and the amount. This applies to cash gifts of any size, including those under the $250 contemporaneous written acknowledgment threshold.

    • 26 U.S.C. § 170 (LII), § 170(f)(17)No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution. Checked 2026-10-11.

  59. The QCD must satisfy § 170 deductibility rules (other than percentage limits), including the contemporaneous written acknowledgment requirement for gifts of $250 or more. Any benefit received (e.g., a gala dinner) can disqualify the QCD because the entire distribution must be deductible.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 Checked 2026-10-09.
    • IRS Notice 2007-7, A-39including the substantiation requirements under § 170(f)(8). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(A)No deduction shall be allowed under subsection (a) for any contribution of $250 or more unless the taxpayer substantiates the contribution by a contemporaneous written acknowledgment Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsyou must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution. Checked 2026-10-09.

  60. The annual QCD exclusion was $100,000 through 2023 and is inflation-indexed for tax years beginning after 2023 (SECURE 2.0 § 307), rounded to the nearest $1,000: $105,000 for 2024, $108,000 for 2025, $111,000 for 2026.

  61. The limit applies per IRA owner. On a joint return each spouse may exclude up to the limit, but only from IRAs that spouse owns; one spouse cannot use the other's unused limit.

    • IRS Publication 590-B (2025), Ch. 2, QCDsIf you file a joint return, your spouse can also have a QCD and exclude up to $108,000. Checked 2026-10-09.
    • IRS Notice 2007-7, A-34For married individuals filing a joint return, the limit is $100,000 per individual IRA owner. Checked 2026-10-09.

  62. The QCD exclusion cap applies to the aggregate amount of qualified charitable distributions with respect to a taxpayer during a taxable year, not per account.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)So much of the aggregate amount of qualified charitable distributions with respect to a taxpayer made during any taxable year which does not exceed $100,000 shall not be includible in gross income of such taxpayer for such taxable year. Checked 2026-10-09.

  63. A distribution is a QCD only to the extent it would be includible in gross income without the QCD exclusion (§ 408(d)(8)(B) flush language). A qualified Roth IRA distribution is not includible, so it cannot be a QCD.

    • 26 U.S.C. § 408(d)(8)(B), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-10.

  64. A qualified distribution from a Roth IRA is not includible in gross income (§ 408A(d)(1)).

    • 26 U.S.C. § 408A (LII), § 408A(d)(1)(A)Any qualified distribution from a Roth IRA shall not be includible in gross income. Checked 2026-10-09.

  65. The excludable QCD amount is reduced by the total deductible IRA contributions made for years ending on or after the owner reached 70½, less amounts already used to reduce prior years' QCDs (effective for tax years after 2019, SECURE Act). The reduced amount is taxable but may be deductible as a charitable contribution if itemizing.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A), second sentencethe aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70½ Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, Offset of QCDs by amounts contributed after age 70½Beginning in tax years after December 31, 2019, the amount of QCDs that you can exclude from income is reduced by the excess of the aggregate amount of IRA contributions you deducted Checked 2026-10-09.

  66. A donor need not reduce a contribution for a benefit of only token value when the charity correctly determines the value isn't substantial and tells the donor the payment is fully deductible. So such a token item does not stop a gift from being fully deductible.

    • IRS Publication 526 (2025), Contributions From Which You Benefit, Token itemsYou don’t have to reduce your contribution by the value of any benefit you receive if both of the following are true. You receive only a small item or other benefit of token value. The qualified organization correctly determines that the value of the item or benefit you received isn’t substantial and informs you that you can deduct your payment in full. Checked 2026-10-10.

  67. For the QCD test that the entire distribution be deductible under § 170, the § 170(b) percentage-of-AGI limits are disregarded, so a large QCD does not fail because a deduction of that size would exceed those limits.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph). Checked 2026-10-10.

  68. A QCD counts toward the IRA owner's (or beneficiary's) required minimum distribution for the year.

    • IRS Publication 590-B (2025), Ch. 1, Required minimum distributions noteA qualified charitable distribution will count towards your required minimum distribution. Checked 2026-10-09.
    • IRS Notice 2007-7, A-42The amount distributed in a qualified charitable distribution is an amount distributed from the IRA for purposes of §§ 408(a)(6), 408(b)(3), and 408A(c)(5). Checked 2026-10-09.

  69. Distributing more than the RMD in one year (including through a QCD larger than the RMD) does not create a credit toward future years' RMDs.

    • IRS Publication 590-B (2025), Ch. 1, Miscellaneous Rules for Required Minimum Distributions, More than minimum receivedIf, in any year, you receive more than the required minimum amount for that year, you won't receive credit for the additional amount when determining the minimum required amounts for future years. Checked 2026-10-09.

  70. The RMD applicable age is 73 for an individual who attains age 72 after 2022 and age 73 before 2033, and 75 for an individual who attains age 74 after 2032 (generally, people born in 1960 or later). Read literally, people born in 1959 fit both clauses; the statute's text does not resolve that overlap.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I) In the case of an individual who attains age 72 after December 31, 2022 , and age 73 before January 1, 2033 , the applicable age is 73. (II) In the case of an individual who attains age 74 after December 31, 2032 , the applicable age is 75. Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Lines 4a and 4b, More than one distributionYou must start receiving at least a minimum amount from your traditional IRA by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  71. The 73 applicable age applies to individuals who attain age 72 after December 31, 2022 (born in 1951 or later); 75 applies to those who attain 74 after 2032. So the 73/75 RMD start ages apply to people born in 1951 or later.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)In the case of an individual who attains age 74 after December 31, 2032, the applicable age is 75. Checked 2026-10-10.
    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I)the applicable age is 73 Checked 2026-10-10.