Tax-Smart Giving

When it comes to taxes, everyone could use an “Easy” button, right? Taxes can be stressful, confusing and make you want to avoid adulting.

And, with the new year comes new laws. But in 2026, one of those new tax laws might benefit your bank account. For 2025 taxes filed in 2026, you may still be able to take a deduction even if you don’t itemize.

According to Edward Jones financial advisor Becky Kwong, “…the recent tax law changes allow for an "above the line" deduction of $1,000 in charitable contributions made in 2025 for single tax filers and $2,000 if married filing joint.”

Kwong, a former CAC board member, also noted that “…if you combine a few years’ worth of charitable gifts in a single year, you could surpass the standard deduction amount and then itemize deductions for that year.”

In other news for the new year, CAC has partnered with FreeWill to make tax-smart giving easy. From the click of link on our website, donors can initiate a stock, IRA, DAF or crypto gift, completing the paperwork online in minutes.

For those new to these non-cash giving options, Kwong provided some additional details.

“If you're 70 ½ or older, you can transfer up to $105,000 from your traditional IRA to a qualified charitable organization, keeping this money out of your taxable income,” Kwong explained. “This could prove valuable once you are required to take withdrawals from your IRA when you turn 73, or 75 if you were born in 1960 or later.”

She continued, “Another possibility is to establish a donor-advised fund, which you can direct to make periodic grants to selected charities. You get an immediate tax deduction for your contribution, and if you donate appreciated assets, you’ll avoid capital gains taxes.”

As always, Kwong recommends that donors consult with their tax advisors before taking action on these strategies. If they’re appropriate for your situation, you and your favorite charities could benefit, she said.

A portion of this content was provided by Edward Jones for use by Becky Kwong, your Edward Jones financial advisor at 2300 Barrington Road, Suite 215 in Hoffman Estates.

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