Charitable Act

This bill lets people who take the standard deduction also deduct some of their gifts to charity. For tax years 2026 and 2027, you can deduct charitable donations up to one-third of your standard deduction, even if you do not itemize. It also removes a special penalty that could be charged if someone who doesn’t itemize overstates their charitable gifts on their taxes. These changes apply to tax years starting after December 31, 2025 .

Key points:

• Who is affected: Individual taxpayers who take the standard deduction and don’t itemize.
• What changes: You may deduct charitable contributions up to one-third of your standard deduction; the extra penalty for overstating such gifts is eliminated.
• When: Applies to tax years beginning in 2026 and 2027; effective for years starting after December 31, 2025.