Robert Brokamp

Starting in 2026, only charitable contributions in excess of 0.5% of adjusted gross income will be deductible for those who itemize their deductions.

So for example, if your AGI is $150,000, you will only be able to deduct contributions in excess of $750.

So this could be an argument for doing more charitable giving this year.

On the other hand, there will be a new above-the-line deduction for cash contributions to qualified charities starting in 2026.

It's $1,000 for single filers and $2,000 for married couples filing jointly.

Above-the-line means that you don't have to itemize to take the deduction, so it may make sense to delay some of your charitable giving until 2026 if you plan on taking the standard deduction.

That said, keep in mind that most charities could really use the money as soon as possible.

Now, there are a lot of rule requirements related to using charitable contributions to reduce your tax bill, so please do your own research before making any decisions or taking any actions, and perhaps consult a tax advisor.

If you're looking for ideas for organizations to support, may I humbly suggest a couple?

The first is the Fool Community Foundation, which strives to create new wealth-building opportunities for Americans living paycheck to paycheck by supporting innovative organizations and creating tools such as the Freedometer that helps workers track and improve their financial progress.

Learn more at foolfoundation.org.

And the second is a nonprofit I've personally worked with for years, and it is Together We Bake, an organization in Alexandria, Virginia, that provides workforce development for women with limited resources facing barriers to employment.

I'd personally be quite grateful if you visited TogetherWeBake.org and made a donation and or bought some really delicious cookies or granola, which also make great holiday gifts.

And that, my friends, is the show.

I hope you have a splendid and safe Thanksgiving holiday.

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