This new tax deduction in Trump’s Big Beautiful Bill lets people cash in on charitable donations up to $2,000. Here’s what to know

President Donald Trump’s “One Big Beautiful Bill,” which was recently signed into law, offers Americans a number of of tax benefits. It makes many of the 2017 changes from the Tax Cuts and Jobs Act (TCJA) permanent, and adds some new tax rules, both short-term and long-term, according to H&R Block.

In addition to the “No Tax on Tips” provision (which allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes) and a car loan deduction, hidden away in the 940-page mega bill is another little-known write-off for taxpayers who make charitable donations. Here’s what to know.

What are the new tax rules for deducting charitable donations?

With the new law, taxpayers who claim the standard deduction, not just those who itemize their taxes, will be able to claim a charitable deduction for cash contributions, according to H&R Block. That write-off goes into effect in 2026.

Not sure what the difference is between standard and itemized deductions? The standard deduction is a specific dollar amount that reduces the amount of taxable income. However, some taxpayers choose to itemize their deductions if their allowable itemized deductions total is greater than their standard deduction, according to the Internal Revenue Service (IRS). (Other taxpayers aren’t entitled to use the standard deduction.)

In 2020, during the pandemic, and under Trump’s first term, The CARES Act—Coronavirus Aid, Relief, and Economic Security Act—allowed a deduction of $300 for cash donations for those taking the standard deduction, and later doubled that amount to $600 for joint filers or married couples in 2021, before it was phased out, per USA TODAY.

Now, filers can take an above-line deduction of up to $1,000 for single individuals and $2,000 for married joint fillers, which can lower a taxpayers’ bottom line, or gross adjusted income, per H&R Block. However, this does not apply to property contributions made to a charity.

How will deductions for charitable donations change for itemized taxes?

Also starting in 2026, taxpayers who claim an itemized deduction for charitable contributions will be required to reduce their deduction by 0.5% of their adjusted gross income.