The Charitable Act modifies and extends the tax deduction for charitable contributions for individuals not itemizing deductions.

The Charitable Act amends the Internal Revenue Code to modify and extend the deduction for charitable contributions for individuals who do not itemize deductions. Specifically, it adjusts the penalty for underpayment of tax and eliminates a certain penalty. It also modifies the deduction rules for charitable contributions, allowing a deduction equal to one-third of the standard deduction for taxpayers not itemizing deductions for taxable years beginning in 2026 or 2027. These changes apply to taxable years beginning after December 31, 2025.

The Charitable Act modifies and extends the tax deduction for charitable contributions for individuals not itemizing deductions.

The Charitable Act amends the Internal Revenue Code to modify and extend the deduction for charitable contributions for individuals who do not itemize deductions. Specifically, it adjusts the penalty for underpayment of tax and eliminates a certain penalty. It also modifies the deduction rules for charitable contributions, allowing a deduction equal to one-third of the standard deduction for taxpayers not itemizing deductions for taxable years beginning in 2026 or 2027. These changes apply to taxable years beginning after December 31, 2025.