October 4, 2022
The 2017 Tax Cuts and Jobs Act (TCJA) changed tax incentives for charitable contributions. Several provisions—most importantly, an increase in the standard deduction and limits on itemized deductions—led to a large reduction in the number of taxpayers who itemize on their federal tax returns. Using available data, we find that charitable contributions fell by much less than the use of federal deductions alone suggest. This information can help analysts better understand how charitable contributions respond to tax incentives and inform future charitable deduction reforms.