A bipartisan Senate bill, the “Charitable Act,” would reestablish an above-the-line charitable deduction. The deduction would allow taxpayers who do not itemize to deduct their charitable contributions up to an amount equal to up to one third of the standard deduction.
The bill is sponsored by Sens. Jim Lankford (R-OK) and Chris Coons (D-DE). It has 11 cosponsors, both Republican and Democrat. The cosponsors are Sens. Catherine Cortez Masto (D-NV), John Hickenlooper (D-CO), Pete Rickets (R-NE), Amy Klobuchar (D-MN), Raphael Warnock (D-GA), Jeanne Shaheen (D-NH), John Curtis (R-UT), Marsha Blackburn (R-TN), Jerry Moran (R-KS), Katie Britt (R-AL) and Tim Scott (R-SC).
The Lankford-Coons above-the-line charitable contribution proposal significantly increases the previous above-the-line charitable contribution deduction amount of $300. The standard deduction for 2024 is $14,600 for single taxpayers, $29,200 for married couples filing jointly, and $21,900 for heads of households.
Prospects: The above-the-line charitable contribution issue is popular and could be supported on a bipartisan basis by many lawmakers. However, it will face stiff competition for limited resources (and past revenue estimates of less generous provisions have been high) i
n the upcoming tax bill—and will unlikely be powerful enough to overcome united Democratic opposition to an all-GOP reconciliation tax bill. Thus, the proposal’s chances are 50-50 at best.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org