Plain Language Summary
# Summary of HR 801: Charitable Act **What It Does** This bill would make it easier for average taxpayers to claim tax deductions for charitable donations. Currently, only taxpayers who "itemize" their deductions can deduct charitable contributions—most taxpayers use the standard deduction instead and get no tax benefit from donating. HR 801 would allow non-itemizing taxpayers to deduct charitable gifts up to one-third of their standard deduction (approximately $4,700 for single filers under current tax law) starting in 2026 or 2027. The bill also removes a 50% penalty for taxpayers who accidentally overstate their charitable donations. **Who It Affects** This change primarily benefits average Americans who donate to charities but don't itemize deductions on their tax returns—roughly 90% of taxpayers.
Charities may also benefit if tax incentives encourage more giving. The bill has no direct impact on wealthy taxpayers, who already itemize and can deduct all charitable contributions. **Current Status** HR 801 is currently in committee, meaning it has been introduced but not yet debated or voted on by the full House. The bill was sponsored by Representative Blake Moore (R-UT) and remains in the early stages of the legislative process.
CRS Official Summary
Charitable ActThis bill allows an individual taxpayer who does not itemize their tax deductions to claim a tax deduction for charitable contributions and eliminates the tax penalty for overstating charitable contributions. (Some limitations apply).Under the bill, for tax years beginning in 2026 or 2027, an individual taxpayer who does not itemize their tax deductions may deduct charitable contributions of up to one-third of the standard deduction allowed to such individual. (Under current law, an individual taxpayer generally must itemize their tax deductions to deduct charitable contributions.)The bill also eliminates the tax penalty for an underpayment of taxes attributable to overstated charitable contributions by taxpayers who do not itemize deductions. (Under current law, taxpayers who claim a deduction under this bill may be assessed a tax penalty in the amount of 50% of the portion of an understatement of tax liability attributable to overstated charitable contributions.)
Latest Action
Referred to the House Committee on Ways and Means.