Although nothing has changed for 2025, the recently passed tax bill will usher in three major alterations to charitable giving in 2026, two of which limit the tax benefit of charitable giving for taxpayers who itemize their deductions. For those in the highest tax bracket (37 percent), there will be a new cap on charitable deductions, from 37 cents on the dollar to 35 cents on the dollar.
Audits from the IRS are no picnic. The Internal Revenue Service has a job to do, and that often involves targeting people they think are gaming the system for a more intensive inspection. The IRS can ask for clarification, adjust your tax filing for you (and allow you to either accept the changes or show proof that you had the correct figures to begin with), or go all in with an audit of your finances. They are rare, but the IRS is more likely to audit taxpayers whose returns have certain red flags.