(A) in the heading, by striking ‘‘STANDARD 
DEDUCTION’’ and inserting ‘‘GUARANTEED DE-
DUCTION’’, 
(B) in the heading of paragraph (3), by 
striking ‘‘STANDARD DEDUCTION’’ and inserting 
‘‘GUARANTEED DEDUCTION’’, and 
(C) by striking ‘‘standard deduction’’ and 
inserting ‘‘guaranteed deduction’’. 
(6) Section 3402 of such Code is amended by 
striking ‘‘standard deduction’’ each place it appears 
and inserting ‘‘guaranteed deduction’’. 
(7) Section 6012 of such Code is amended by 
striking ‘‘standard deduction’’ each place it appears 
and inserting ‘‘guaranteed deduction’’. 
(8) Section 6013(b)(3)(A) of such Code is amend-
ed by striking ‘‘standard deduction’’ and inserting 
‘‘guaranteed deduction’’. 
(9) Section 6014(b)(4) of such Code is amended 
by striking ‘‘standard deduction’’ and inserting 
‘‘guaranteed deduction’’. 
(10) Section 6334 of such Code is amended by 
striking ‘‘standard deduction’’ each place it appears 
and inserting ‘‘guaranteed deduction’’. 
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2023. 
SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2024 AND 
2025. 
(a) IN GENERAL.—Section 63(c) of the Internal Rev-
enue Code of 1986 (as amended by section 2) is amended 
by adding at the end the following new paragraph: 
‘‘(8) BONUS GUARANTEED DEDUCTION FOR TAX-
ABLE YEARS 2024 AND 2025.— 
‘‘(A) IN GENERAL.—In the case of a taxable 
year beginning after December 31, 2023, and be-
fore January 1, 2026, the guaranteed deduction 
shall be increased by the amount of the bonus 
guaranteed deduction. 
‘‘(B) BONUS
GUARANTEED
DEDUCTION.— 
For purposes of this paragraph, the bonus guar-
anteed deduction is— 
‘‘(i) twice the dollar amount in effect 
under clause (iii) in the case of a joint re-
turn or a surviving spouse (as defined in 
section 2(a)), 
‘‘(ii) $3,000 in the case of a head of 
household, and 
‘‘(iii) $2,000 in any other case. 
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‘‘(C) ADJUSTMENT FOR INFLATION.—In the 
case of a taxable year beginning after 2024, the 
dollar amounts in clauses (ii) and (iii) of sub-
paragraph (B) shall each be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘2023’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
If any increase under this subparagraph is not 
a multiple of $50, such increase shall be rounded 
to the next lowest multiple of $50. 
‘‘(D) LIMITATION ON BONUS GUARANTEED 
DEDUCTION
BASED
ON
MODIFIED
ADJUSTED 
GROSS INCOME.— 
‘‘(i) IN GENERAL.—The bonus guaran-
teed deduction determined under subpara-
graph (B) shall be reduced (but not below 
zero) by 5 percent of so much of the tax-
payer’s modified adjusted gross income as 
exceeds the threshold amount. For purposes 
of the preceding sentence, the term ‘modified 
adjusted gross income’ means adjusted gross 
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income increased by any amount excluded 
from gross income under section 911, 931, 
or 933. 
‘‘(ii) THRESHOLD AMOUNT.—For pur-
poses of clause (i), the threshold amount 
is— 
‘‘(I) $400,000 in the case of a 
joint return or a surviving spouse (as 
defined in section 2(a)), 
‘‘(II) $300,000 in the case of a 
head of household, and 
‘‘(III) $200,000 in any other case. 
‘‘(E) BONUS GUARANTEED DEDUCTION NOT 
ALLOWED TO DEPENDENTS.—In the case of any 
individual with respect to whom paragraph (5) 
applies for any taxable year, subparagraph (A) 
shall not apply.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2023. 
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Union Calendar No. 101 
118TH CONGRESS 
1ST SESSION 
H. R. 3936 
[Report No. 118–129] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
rename the standard deduction the guaranteed 
deduction, and to add a bonus amount to the 
guaranteed deduction for taxable years 2024 and 
2025. 
JUNE 30, 2023 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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