To offset some of the impact of reduced itemized deductions on charitable giving, the bill introduces several new above-the-line deductions and enhanced credits for philanthropy.
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Universal Charitable Deduction
A permanent above-the-line charitable deduction is established for cash contributions to qualifying 501(c)(3) organizations, up to $600 for single filers and $1,200 for married filers — available to all taxpayers regardless of whether they itemize.
Core Takeaway
Taxpayers who switched to the standard deduction after 2017 and stopped giving to charity now have a modest but real tax incentive to resume. For a couple at the 22% marginal rate, the $1,200 deduction is worth $264 annually.