2025 Tax Law Changes: Key Planning Tips
Recent tax changes open new doors for charitable giving and retirement planning. Here’s
what to know:
1. New Above-the-Line Deduction
Starting in 2026, non-itemizers can deduct up to $1,000 (single) or $2,000 (MFJ) in cash
gifts to qualified public charities. Donor-advised funds and supporting orgs don’t qualify.
2. Smarter Itemized Giving
If you itemize, aim for donations exceeding 0.5% of AGI. High earners (37% bracket) get a
max 35% deduction benefit.
3. Use Qualified Charitable Distributions (QCDs)
Age 70½+? Give directly from your IRA to charity (up to $108,000/year). Also, a one-time
$53,000 QCD is allowed to a split-interest entity.
4. Know Your RMD Rules
RMDs now start at 73 (75 by 2033). Miss one? Penalty is 25%, reduced to 10% if fixed
within 2 years.
5. Prioritize Cash Gifts
Cash donations to 501(c)(3) public charities remain the most tax-efficient. Plan giving
around these rules.
Talk to your tax advisor to tailor these strategies to your situation.
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