Starting January 1, 2026, several federal tax law changes will affect how individual donors can deduct charitable contributions. 

Whether you itemize or take the standard deduction, these new federal tax rules will affect how your donations are treated, potentially changing when, how, and how much you give. From a brand-new deduction for non-itemizers to updated limits for high earners, understanding what’s ahead can help you make the most of your generosity. 

Here’s a breakdown of what’s changing and what you should consider before and after the new rules take effect. 

The final months of the year give you an opportunity to take stock of your finances. It’s important to align your investment portfolio and tax strategy before the calendar turns. When you prepare thoughtfully now, you could reduce taxes, avoid penalties, and position your wealth more effectively for the future. 

You’ve spent the last few decades toiling away at your job or running your own business. You’ve provided for your family and possibly created jobs for others at the same time. And you have certainly been paying income taxes over that same time frame, probably ever since your dad got you that summer job that paid you the minimum wage.

As your retirement years come into focus, it’s a good bet that you’re looking forward to stepping away from the everyday grind of your family business or profession. Maybe you also believe that you will be walking away from paying Uncle Sam his share of your retirement income. That popular misconception is certainly not the case.

While retired Americans generally pay less in income taxes than other age groups because of a reduction in income, the tax burden can still be a significant line item in their budget.

Many different income streams in retirement, including Social Security benefits, are subject to federal and possibly state income taxes. This discussion, though, will focus on tax liabilities at the federal level. The amount of tax you will be required to pay is at least partly a function of how much income you will receive once you stop working. Let’s explore the primary sources of retirement income and what tax burden they carry.