The 0.5% Floor on Charitable Deductions (2026)

Starting with tax year 2026, the itemized charitable deduction only counts gifts above 0.5% of your adjusted gross income (P.L. 119-21; see also this TurboTax explainer). With a $200,000 AGI, the first $1,000 of gifts is not deductible. The disallowed amount carries forward only if you already have a carryforward from the 60%/30% AGI limits; otherwise it is lost. Small, steady givers who itemize are hit hardest; bunching two years of gifts into one reduces the floor's bite.

Last reviewed 2026-10-29. General information, not tax advice. IRS Pub. 526, Pub. 6196 and a tax professional come first.