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Charitable Act
2/26/2025, 9:06 AM
Summary of Bill HR 801
Currently, individuals who do not itemize their deductions are not able to deduct charitable contributions on their tax returns. This bill seeks to change that by allowing non-itemizers to deduct charitable contributions up to a certain amount.
The bill also aims to extend this deduction for charitable contributions for non-itemizers, providing them with an incentive to donate to charitable organizations even if they do not itemize their deductions. Overall, the goal of Bill 119 HR 801 is to encourage charitable giving among all individuals, regardless of whether they itemize their deductions on their tax returns. This could potentially lead to an increase in donations to charitable organizations and help support important causes in our communities.
Congressional Summary of HR 801
Charitable Act
This bill allows an individual taxpayer who does not itemize their tax deductions to claim a tax deduction for charitable contributions and eliminates the tax penalty for overstating charitable contributions. (Some limitations apply).
Under the bill, for tax years beginning in 2026 or 2027, an individual taxpayer who does not itemize their tax deductions may deduct charitable contributions of up to one-third of the standard deduction allowed to such individual. (Under current law, an individual taxpayer generally must itemize their tax deductions to deduct charitable contributions.)
The bill also eliminates the tax penalty for an underpayment of taxes attributable to overstated charitable contributions by taxpayers who do not itemize deductions. (Under current law, taxpayers who claim a deduction under this bill may be assessed a tax penalty in the amount of 50% of the portion of an understatement of tax liability attributable to overstated charitable contributions.)
