Charitable Act
Sponsored By: Senator James Lankford
Introduced
Summary
Would allow non-itemizers to claim a limited charitable deduction. It would also eliminate a special penalty tied to overstated charitable gifts.
Show full summary
- Families and individuals who use the standard deduction: Would be able to deduct charitable gifts up to one-third of their standard deduction for tax years 2026 and 2027.
- Taxpayers facing accuracy penalties: Would remove the special 50% penalty for underpayments tied to overstated charitable contributions and would update related penalty cross-references.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Cap on charity deductions for non-itemizers
If enacted, this bill would limit charitable deductions for people who use the standard deduction in tax years 2026 and 2027. If you do not itemize, your deductible charity gifts would be capped at one-third of your standard deduction for that year. The rule applies only to taxpayers who do not elect to itemize. If your gifts exceed that cap, your taxable income could be higher.
Remove higher tax accuracy penalty
If enacted, the bill would remove a higher accuracy-related penalty in the tax code for tax years beginning after December 31, 2025. It would strike one penalty paragraph, renumber another, and update three cross-references so related rules point to the right paragraph. Fewer taxpayers would face that increased penalty and related confusion in those years.
Sponsors & CoSponsors
Sponsor
James Lankford
OK • R
Cosponsors
Christopher Coons
DE • D
Sponsored 1/29/2025
Catherine Cortez Masto
NV • D
Sponsored 1/29/2025
John Hickenlooper
CO • D
Sponsored 1/29/2025
Pete Ricketts
NE • R
Sponsored 1/29/2025
Amy Klobuchar
MN • D
Sponsored 1/29/2025
Raphael Warnock
GA • D
Sponsored 1/29/2025
Jeanne Shaheen
NH • D
Sponsored 1/29/2025
John Curtis
UT • R
Sponsored 1/29/2025
Marsha Blackburn
TN • R
Sponsored 1/29/2025
Jerry Moran
KS • R
Sponsored 1/29/2025
Katie Britt
AL • R
Sponsored 1/29/2025
Tim Scott
SC • R
Sponsored 1/29/2025
Jacky Rosen
NV • D
Sponsored 1/29/2025
Roger Wicker
MS • R
Sponsored 2/4/2025
Gary Peters
MI • D
Sponsored 2/4/2025
Susan Collins
ME • R
Sponsored 2/4/2025
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 2/5/2025
Ted Budd
NC • R
Sponsored 2/13/2025
John Boozman
AR • R
Sponsored 2/27/2025
Maggie Hassan
NH • D
Sponsored 3/26/2025
James Justice
WV • R
Sponsored 4/10/2025
Ruben Gallego
AZ • D
Sponsored 6/27/2025
John Hoeven
ND • R
Sponsored 6/27/2025
Roll Call Votes
No roll call votes available for this bill.
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