Charitable Act aims to extend COVID-19 era tax breaks for taxpayers.
Charitable Act to Continue Reducing Tax Bill Under COVID-19 Era Tax Break
A new bill proposed by a group of lawmakers, the Charitable Act, aims to extend a COVID-19 era tax break that allows several taxpayers to increase charitable deductions by reducing their taxes by donating them to charities.
The Charitable Act will allow raising the tax deductions for individual and joint filers, wherein individual filers will have a $4,500 deduction and joint filers will have a $9,000 deduction, which will greatly help despite the credit ending after 2021.
After the credit went away, there was a lower number of taxpayers eligible to claim their charitable giving deduction because several taxpayers no longer itemize their taxes; however, all taxpayers can be eligible again for the credit with the Charitable Act.
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Proposal of Charitable Act Receives Support and Endorsements from Several Organizations
The proposal of the Charitable Act received support and endorsements from several individuals and hundreds of nonprofit and charitable organizations, as the bill will encourage the taxpayers to give back to the community.
The donations to charities decreased in 2022 after the charitable deduction stopped, and if the Charitable Act is approved, it will help expand the tax break and the number of donors again, Yahoo! reported.
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