The tax break for donating to charity should be made available to more Americans to encourage greater charitable giving during the coronavirus pandemic, according to two House members.
A universal charitable deduction for both itemizers and non-itemizers for tax years 2020 and 2021 should be included in any COVID-19 legislative relief package to help charities fighting the disaster, Reps. Christopher H. Smith, R-N.J., and Henry Cuellar, D-Texas, said in a March 18 letter to Treasury Secretary Steven Mnuchin.
“Encouraging Americans to donate during this difficult time is critical,” Smith and Cuellar wrote. “We need to incentivize all Americans — no matter if they itemize — to give so that charitable and nonprofit organizations receive immediate assistance in funding their vital missions and supporting their employees during this pandemic.”
Last year, Smith and Cuellar introduced the Charitable Giving Tax Deduction Act (H.R. 651), which would allow taxpayers to deduct charitable gifts before deciding whether to itemize.
The Charitable Giving Coalition has also asked the Senate Finance Committee to include a temporary universal charitable deduction as part of an emergency COVID-19 response package.
“A temporary universal charitable deduction would encourage all Americans to give more, helping charitable organizations continue to provide vital services to families, workers, and communities critically impacted by the novel coronavirus,” the coalition wrote in a March 18 letter to Finance Committee Chair Chuck Grassley, R-Iowa.
Legislation introduced late March 19 in the Senate included recommendations from Grassley and other committee Republicans to allow taxpayers to deduct up to $300 of cash contributions to charity regardless of whether they itemize and to increase the limitations on deductions for charitable donations by itemizers and corporations.
In another March 18 letter, more than 50 nonprofits asked lawmakers to establish a universal charitable deduction through the end of 2021. They also asked Congress to permit taxpayers who donate now to claim the deduction on their 2019 tax returns.