How Trump’s tax bill aims to reshape charitable deductions 


    Congress is looking to revive charitable giving—especially among everyday donors—but the House and Senate have different approaches, The Wall Street Journal writes. 

    Both chambers are negotiating versions of a tax bill that would bring back the charitable deduction for people who take the standard deduction, a benefit lost after the 2017 tax law overhaul. The Senate’s version is more generous—offering a permanent deduction of up to $2,000 for joint filers—but it also introduces a new floor for high earners, limiting itemized charitable deductions to amounts over 0.5% of their income. The House version is more modest and temporary, mirroring the pandemic-era deduction with caps of $150 and $300.

    Both bills also propose broader caps on itemized deductions for wealthier taxpayers, potentially reducing the tax benefit of large donations. As lawmakers aim to pass the legislation by July 4, tax advisers say some donors may want to wait—or rush—to give, depending on how the final bill shakes out. Either way, major changes to the charitable landscape are likely on the horizon.

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