Ask the Tax Editor, September 25: Can I deduct GoFundMe contributions?

Each week in our Ask the Tax Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers on charitable donations, including one on whether a taxpayer can deduct a GoFundMe contribution. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. GoFundMe contribution

Question: I contributed $250 to a GoFundMe account set up for a family who lost their house in a fire. Can I deduct the contribution on my tax return?

Joy Taylor: Unfortunately, no. Donations that a taxpayer makes to individuals aren't deductible. This same rule also generally applies to gifts made through personal fundraising websites that are earmarked for one person or a small group, such as a family who lost a home or a person who needs help paying medical expenses.

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2. Tax changes for 2026

Question: I generally claim the standard deduction when I file my Form 1040. I heard that next year I can deduct my charitable gifts even if I don't itemize on Schedule A. Is this true?

Joy Taylor: Yes, but there is a limit. Last year's "One Big Beautiful Bill" (OBBB) lets nonitemizers deduct charitable cash contributions. If you claim standard deductions, you can write off up to $1,000 of your cash gifts to charitable organizations, starting with 2026 returns filed in 2027. The amount is $2,000 for joint filers. This write-off is permanent and doesn’t phase out for upper-income taxpayers.

Gifts to donor-advised funds and private nonoperating foundations are excluded. "Cash donations" means gifts by cash, check, debit card, credit card, payroll deduction, electronic funds transfer, online payment service, or the transfer of a gift card redeemable for cash.

Note that there is another change to charitable deductions, starting with 2026 returns filed next year. Charitable deductions claimed by itemizers on Schedule A get a bit of a haircut. The Schedule A charitable write-off is deductible only to the extent that total charitable donations exceed 0.5% of adjusted gross income (AGI). This is similar to the rules for deducting medical expenses, in which total eligible medical costs are deductible only to the extent they exceed 7.5% of AGI.

3. QCD and charitable gift annuity

Question: I'm planning to make a $50,000 donation to my alma mater through a charitable gift annuity this year. Is this eligible for a qualified charitable distribution (QCD)?

Joy Taylor: It depends. People age 70½ and older can transfer up to $111,000 in 2026 from a traditional IRA directly to charity. QCDs can be done only from an IRA, either one that you own or an inherited IRA. You can’t do them from a 401(k).

QCDs are nontaxable and aren't included in your adjusted gross income (AGI). And they can count toward your required minimum distribution (RMD), thus reducing the taxable amount of the RMD, provided you do the QCD before withdrawing your full RMD for the year. Note that you can't deduct a QCD as a charitable contribution on Schedule A.

As a general rule, in a QCD, the money must generally go to a Section 501(c)(3) organization. The 2022 SECURE 2.0 legislation provided an easing to this. It allows IRA owners to do a one-time (not annual) QCD of up to $55,000 for 2026 through a charitable gift annuity, charitable remainder unitrust or a charitable remainder annuity trust. Many private colleges with charitable gift annuity programs tout the QCD option. If you already did this in 2023, 2024 or 2025, you can’t do it again.

4. Verifying a charity's status

Question: I am thinking of donating to a charity this year to help victims of a natural disaster in my state. But I want to avoid scams. How do I know whether a charity is legitimate?

Joy Taylor: Make sure that you donate to an IRS-recognized Section 501(c)(3) tax-exempt organization. The IRS's website has a tax-exempt organization search tool. You can use the tool to check the organization's eligibility to receive tax-deductible contributions. You can also review some information about the organization's tax-exempt status and tax filings with the IRS.

It is wise to watch out for bogus charities and solicitors. They crop up after big disasters. They want to steal your money and get you to divulge personal and financial information.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

More Reader Questions Answered

• All Ask the Editor Q&As
• Ask the Editor: Will I be Audited by the IRS?
• Ask the Editor: Reader Questions on QCDs
• Ask the Editor: QCDs and Tax Planning
• Ask the Editor: 10-Year Rule for Inherited IRAs
• Ask the Editor: Tax Questions on Roth IRA Conversions
• Ask the Editor: Tax Questions on the Charitable Deduction