Charitable Act

S 566, the "Charitable Act," modifies tax deductions for charitable contributions for individuals who do not itemize their deductions on federal income taxes. It allows these taxpayers to deduct up to one-third of their standard deduction amount for 2023 and 2024 tax years, instead of the usual itemized deduction. The bill also removes references to a repealed penalty provision (Section 6662(b)(10)) and adjusts related penalty language in the tax code. This directly affects non-itemizing taxpayers who make charitable contributions, providing a new deduction option for those years only. The changes apply to tax years beginning after December 31, 2022.