Taxpayers who choose to take the Standard Deduction

For 2026, the standard deduction is $16,100 for single filers and $32,200 for those filing jointly. Even if you take the standard deduction, you do not have to give up a tax benefit for your generosity: you can still deduct up to $1,000 ($2,000 married and filing jointly) for cash gifts to qualified charities like Salesian Missions.

A Special Bonus for Donors 65 and older

If you are 65 or older in 2026, you may claim an additional $6,000 deduction ($12,000 if spouses both qualify). This is available whether you take the standard deduction or itemize, so it is an easy benefit to overlook. Keep in mind it begins to phase out once your modified adjusted gross income passes $75,000 (or $150,000 for joint filers), so it is worth checking with your tax advisor to see how much applies in your situation. With this special bonus, please consider an extra special gift to Salesian Missions to support the neediest children we serve around the world.

Taxpayers who choose to Itemize their Deductions

Itemizers are subject to a “giving floor” and can only deduct charitable contributions that exceed 0.5% of adjusted gross income (AGI). Starting in 2026, the tax benefit for itemized deductions for taxpayers in the 37% tax bracket is limited to 35%. It is a modest change, but worth knowing about as taxpayers plan their year-end giving. Here is a look at what is and is not deductible:

DEDUCTIBLE

• Mortgage interest on one or two residences up to $750,000 of indebtedness (applies only to new mortgages taken out after December 15, 2017; older mortgages remain tied to the $1 million cap)
• Points on home mortgages 
• Business interest
• Investment interest up to net investment income
• Either State and local income taxes or state and local sales taxes*
• State and local real property and personal property taxes*
• Expenses for medical, dental and vision care (not covered by insurance or other means if they exceed 7.5% of adjusted gross income (AGI) 

*The cap on the combined deduction for state property and income taxes is $40,400 in 2026.

NOT DEDUCTIBLE 

• Credit card interest
• Home equity loan interest
• Most other consumer loan interest
• Prepaid interest other than points on home mortgages
• Auto loan interest (except for qualified passenger vehicle loan interest on cars with final assembly in the U.S.)

Individual Retirement Accounts (IRA)

You can contribute up to $7,500 a year to a traditional IRA or $8,600 if you are 50 or older. There is no age limit, so you may keep contributing for as long as you are still earning income.

Once you turn 73, the IRS requires you to begin taking “Required Minimum Distributions” (RMDs) from your IRA. Your first RMD is due by April1 of the year you turn 73.

Starting at age 70- ½, you can direct gifts straight from your IRA to Salesian Missions through a “Qualified Charitable Distribution” (QCD) and count the amount towards your RMD. To make this work, simply arrange for your QCD to be the first withdrawal you take each year, before any other distribution uses up your RMD. In 2026, you can give up to $111,000 (annual aggregate limit) tax-free directly from your IRA to a charity like Salesian Missions. In 2026 you may use a one-time life-income QCD of up to $55,000 (tax free) to fund a new charitable gift annuity or charitable remainder trust for Salesian Missions. Please note that a QCD’s cannot be directed to a donor advised fund, private foundation, or a supporting organization. The gift needs to go straight to a public charity like Salesian Missions. 

Be aware of Common Mistakes regarding Individual Retirement Accounts (IRAs)

• Taking the RMD first, then trying a QCD. Once you have taken your RMD as a regular distribution, you cannot go back and reclassify it as a QCD. The QCD needs to be the first money out of your IRA that year.
• Endorsing the check. If the custodian writes the check to you and you sign it over to the charity, it does not count as a QCD. The check must be made payable directly to the charity. 
• Sending a QCD to a Donor Advised Fund. DAFs do not qualify. If a QCD goes to a DAF, the entire distribution loses its QCD status and becomes taxable. 
• Skipping the tax-form adjustment. Your IRA custodian will report the QCD as ordinary income on Form 1099-R, that is normal. You (or your preparer) need to subtract the QCD amount on Form 1040, line 4b, and write “QCD” in the margin. Without that step, the IRS will treat the whole distribution as taxable. 
• Waiting for age 73 instead of 70 1/2. These are two different milestones. You can start QCD’s at 70 ½, a full 2-3 years before RMD’s even begin. Waiting until 73 means giving up that head start on tax-free giving. 

Estate Tax and Gift Tax Information

We urge you to consult with your tax advisors regarding any of these deductions or non-deductions as well as more specific details with respect of state and local taxes, medical, dental and vision expenses, losses, deductions for qualified tips and overtime pay, qualified business income, and the “One Big Beautiful Bill Act” (OBBBA) Salesian Missions and members of its Legacy Team may not render any tax or legal advice.

We welcome any questions you may have. Please contact: 

Mike Davenport
Gift Planning Specialist 
[email protected]
914-557-3119 

Robin Popp
Stewardship and Mission Specialist
[email protected]
914-304-3968