A bipartisan bill has been introduced in Congress that would extend and expand the expired non-itemized tax deduction for charitable giving. The Charitable Act (S.566), introduced by U.S. Senators Chris Coons (D-DE) and James Lankford (R-OK), would ensure Americans who donate to nonprofits can deduct those donations from their federal taxes at a higher level than the previous $300 deduction.
The proposed legislation would allow all taxpayers who don’t itemize to claim a deduction of up to one-third of the value of the standard deduction for charitable contributions, which would be around $4,500 for individuals and $9,000 for married joint filers.
The bill’s newly defined tax deductions would apply to rent-to-own individuals who generously contribute to the APRO Charitable Foundation’s RTO Employees Disaster Relief Fund – which helps rent-to-own workers recover from natural disasters – and APRO Scholarship Fund – which helps RTO employees and their family members gain higher education.
According to Senator Coons, Americans contributed a total of about $449 billion to charities, houses of worship, and other nonprofits last year, such as APRO’s Charitable Foundation.
“The Charitable Act will expand the deductions taxpayers can claim, encouraging even more Americans to embrace the civic virtue of charitable giving,” said Coons.
“Our families, churches, and other nonprofits are the first and most important safety net for the most vulnerable members of our communities,” said Senator Lankford. “As Americans donate their time, money, and other resources to our nation’s charities, they should be able to deduct more from their federal taxes as an incentive to financially support nonprofits.”
Click here to learn more about APRO’s Charitable Foundation.
