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A bill to amend the Internal Revenue Code of 1986 to modify and extend the deduction for charitable contributions for individuals not itemizing deductions.
2/14/2025, 11:56 AM
Summary of Bill S 317
Currently, individuals who do not itemize their deductions are not able to claim a deduction for charitable contributions on their taxes. This bill seeks to change that by allowing these individuals to deduct charitable contributions from their taxable income, even if they do not itemize their deductions.
The bill also aims to extend the time period for which this deduction can be claimed, providing individuals with more flexibility in when they can claim their charitable contributions on their taxes. Overall, the Charitable Giving Tax Deduction Act is designed to incentivize charitable giving among individuals who do not typically itemize their deductions, ultimately encouraging more donations to charitable organizations and causes.
Congressional Summary of S 317
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.)
