easy · Certified Financial Planner Estate Planning

The Havel household wants to minimize their 2026 tax bill. They have a 32,200 standard deduction (MFJ). They intend to give10,000 to charity.

Why might 'bunching' their charitable contributions be a recommended strategy?

  1. It increases the annual gift tax exclusion to 190,000 for that year.
  2. It allows them to claim the standard deduction in one year and itemize in the next.
  3. Charitable gifts are only deductible if they are made in 'bunches' of $50,000 or more.
  4. It eliminates the 3.8% Net Investment Income Tax on the gifted amount.

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