S317119th CongressWALLET

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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