Federal Charitable Tax Deduction
Beginning in 2026, taxpayers who do not itemize deductions may be eligible for a federal income tax deduction for qualifying cash gifts to charity: up to $1,000 for an individual or $2,000 for married couples filing jointly.
That's an important change. In recent years, many taxpayers who claimed the standard deduction received no separate federal income tax deduction for charitable contributions. Some 90% of taxpayers do not itemize.
As always, individual circumstances vary, so consult your tax advisor regarding how the new rules apply to you.
Indiana Tax Credit
Alumni and friends who file an Indiana state income tax return are eligible for a tax credit. The State of Indiana will credit up to 50% of a donor's gift to Wabash against their state income taxes. Individual filers receive a $100 credit for the first $200 contributed to Wabash, while joint filers receive a $200 credit for the first $400 contributed to the College.
Example
| Tax filing status | Married | Single |
|---|---|---|
| Gift to Wabash | $400 | $200 |
| Indiana Tax Credit | ($200) | ($100) |
| Out of pocket cost | $200 | $100 |
Indiana residents who file an Indiana state income tax return can download the 2025 CC-40 Tax Form here.