Standard Deduction Update
The standard deduction for tax year 2025 increases to $15,750 for singles, $31,500 for married couples filing jointly, and $23,625 for heads of household. Most taxpayers will opt for this over itemizing unless deductions exceed these amounts.
Charitable Deduction Enhancements
For standard deduction filers starting 2026, up to $1,000 ($2,000 for joint filers) in cash charitable contributions become deductible, excluding donor-advised funds and certain entities. This above-the-line deduction encourages giving without itemizing.
Itemizer Changes
Itemizers gain from a more generous SALT deduction cap, potentially boosting refunds. However, high earners in the 37% bracket get charitable deductions limited to 35% benefit from 2026. Only contributions exceeding 0.5% of AGI qualify as deductible for itemizers.
Filing Strategy Tip
Taxpayers should compare standard vs. itemized deductions, factoring in new charitable and SALT rules, to maximize refunds by April 15 deadline.
