Lawmakers begin bipartisan push to restore donors' tax breaks
Key Democrat mum on whether he supports proposal to expand charitable giving deduction
Tips for first time self-employed filers
A bipartisan group of lawmakers is calling for the restoration of a charitable deduction for donors who don't itemize their taxes, a top priority for nonprofits nationwide.
The proposal has drawn support from Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, who called the charitable deduction a "lifeline, not a loophole." Wyden, D-Ore., said during a committee hearing this week that there is support from Democrats and Republicans for renewing and expanding the deduction.
FED RAISES INTEREST RATES FOR FIRST TIME IN 3 YEARS, PROJECTS 6 MORE HIKES AS INFLATION SURGES
Sen. James Lankford, a Republican from Oklahoma, echoed that sentiment, saying he was "passionate" about expanding the charitable deduction. The GOP lawmaker noted that giving surges every December.
"It is not because of the Christmas spirit," Lankford said. "It’s because of the tax deduction."
Sen. Ron Wyden, D-Ore., questions Secretary of the Treasury Steven Mnuchin as he testifies in front of the Senate Finance Committee Feb. 12, 2020, in Washington, D.C. (Sarah Silbiger/Getty Images / Getty Images)
Lankford has co-sponsored a bill that would extend the break through the 2022 tax year and increase the maximum deduction to about $4,000 for single people and $8,000 for couples.
However, Wyden has not signed on as a co-sponsor of the Lankford bill. He has declined to say whether he supports the legislation.
"I do feel very strongly about expanding the number of Americans who have the opportunity" to deduct charitable giving on their taxes, Wyden said.
Under current law, individuals can deduct gifts valued at no more than 60% of their adjusted gross income, with the excess deductible in future years.
Lawmakers temporarily expanded the deduction in early 2020 with the passage of the $2.2 trillion CARES Act. That law included a charitable deduction of up to $300 that taxpayers who chose to not itemize can claim at the end of 2020. The second change in the CARES Act lifted the cap on how much a donor could deduct in charitable gifts in a single year to as much as 100% of their adjusted gross income for a full year.
Night falls at the Capitol in Washington Dec. 2, 2021. (AP Photo/J. Scott Applewhite / AP Newsroom)
Speakers during the Thursday committee hearing agreed that charitable giving continues to lag behind the need for services as the health crisis drags on and other economic shocks hurt lower-income Americans.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The hearing speakers included Dan Cardinali, CEO of Independent Sector; Susannah Morgan, CEO of the Oregon Food Bank; Una Osili, associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy; and Eugene Steuerle, co-founder of the Urban-Brookings Tax Policy Center.
U.S. charitable donations hit a record $471.44 billion in 2020 as the coronavirus pandemic struck American workers and businesses, according to a report released by Giving USA in July.
The Associated Press contributed to this report