How do I know if bunching makes sense for me?

If your annual itemized deductions are close to the standard deduction ($16,100 single / $32,200 married in 2026), bunching can help. Combine two years of charitable donations into one year to push well above the standard deduction, then take the standard deduction the next year.

What expenses can I bunch?

Charitable donations are the easiest to time. You can also bunch medical expenses (schedule elective procedures in a high-expense year), state tax payments, and mortgage prepayments in some cases.

How does a Donor-Advised Fund help with bunching?

A DAF is the perfect bunching tool. Contribute 2-3 years of donations to your DAF in one year, claim the full deduction that year, then grant to charities on your normal annual schedule. You get the deduction upfront without changing your giving pattern.

Does this work with the new SALT cap?

Yes, but differently. The SALT cap limits state and local tax deductions to $40,000 in 2025 and $40,400 in 2026 (with the higher cap scheduled through 2029 before reverting to $10,000), so bunching SALT is less effective. Focus bunching strategy on charitable donations and medical expenses instead.

How much can I actually save?

Example: If your normal itemized deductions are $17,000 (just above the $16,100 standard deduction), you only gain $900 by itemizing. But if you bunch $10,000 of extra donations in one year, your deductions jump to $27,000 - gaining $10,900 over the standard deduction. At 24% bracket, that's an extra $2,616 in tax savings over the two-year cycle.

Tax Optimization

Bunching Deductions

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intermediate · $50K - $100K

If your itemized deductions are close to the standard deduction, "bunch" two years of charitable donations into one year.

Itemize that year ($28,000+), take standard deduction next year.

DAFs make this easy.

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Tax Benefit

Maximize deductions by alternating itemized/standard

Requirements

Itemized deductions close to standard deduction threshold
Flexibility to time charitable contributions
Multi-year tax planning mindset

How to Implement

1Calculate total itemized deductions for current year
2If close to standard deduction, accelerate next year's donations
3Consider funding Donor-Advised Fund with 2 years of donations
4Itemize this year, take standard deduction next year

Frequently Asked Questions

Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.

Last reviewed: April 2026

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Sources

Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits

Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.