Chicago, USA Jul 5, 2025 , by News Desk

The new ‘big beautiful’ budget bill signed into law by President Trump in July, 2025, includes a new tax break worth up to $2,000—around 90% of filers in the US could take advantage

Most people don’t currently deduct charitable contributions — and it’s not because they’re not generous or don’t want a tax break. Other than under the Covid-19 relief bill, taxpayers generally have had to itemize deductions in order to get a break for charitable giving.

For most people, that doesn’t make sense. Some 9 in 10 taxpayers take the standard deduction, which in 2025 is $15,000 for single filers and $30,000 for joint filers. You’d typically only itemize if the sum of your deductions would save you more money than just taking the standard deduction.

In short, the new law allows anyone who donates to charity to get a tax break — not just the mega-philanthropists among us.

You’ll still have to follow the IRS’ rules on charitable giving to get the break. Donations must be made to qualifying charitable organizations — donations to political campaigns, crowdfunding efforts and, in the case of the proposed tax break, donor-advised funds won’t be eligible

Before you make a donation you plan on deducting, check the IRS’ search tool to make sure the organization is tax-exempt. And be sure to get a receipt for your donation; the IRS generally requires written acknowledgement of any donation in excess of $250.

Always check with your tax advisor for the accuracy and limits applicable to you before making any charitable contributions.

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