How 2026 Tax Changes May Impact Your Giving to TCCC

Beginning January 1, 2026, new federal tax rules will change how charitable donations are deducted when you file in 2027. The good news? If you typically take the standard deduction, you may now be able to deduct up to $1,000 (individuals) or $2,000 (married filing jointly) in cash donations to qualified 501(c)(3) public charities, including Tracy Community Connections Center. This “above-the-line” deduction allows many donors to receive a tax benefit for giving, even if they don’t itemize.

For those who do itemize, a small adjustment is coming when you are filing in 2027. Starting in 2026, only the portion of your charitable giving that exceeds 0.5% of your adjusted gross income (AGI) will be deductible. For most donors, the impact will be modest. However, some may choose to “bunch” donations into one year to maximize their deduction.

If you’re planning a larger gift, it may be worth reviewing your timing and strategy before filing your 2026 taxes in 2027. Keeping good records of cash donations and confirming the nonprofit’s 501(c)(3) status will be especially important under the new rules. As always, thoughtful planning helps ensure your generosity has the greatest possible impact, both for your financial goals and for the individuals and families TCCC serves.

Disclaimer: This information is for general educational purposes only and should not be considered tax advice. Please consult a qualified tax professional regarding your specific situation.