(b) CONFORMING AMENDMENTS.— 
(1) Section 1(g)(4)(A) of such Code is amended 
by striking ‘‘standard deduction’’ and inserting 
‘‘guaranteed deduction’’. 
(2) Section 56(b)(1)(D) of such Code is amend-
ed— 
(A) in the heading, by striking ‘‘STAND-
ARD DEDUCTION’’ and inserting ‘‘GUARANTEED 
DEDUCTION’’, and 
(B) by striking ‘‘standard deduction’’ and 
inserting ‘‘guaranteed deduction’’. 
(3) Section 861(b) of such Code is amended by 
striking ‘‘standard deduction’’ and inserting ‘‘guar-
anteed deduction’’. 
(4) Section 862(b) of such Code is amended by 
striking ‘‘standard deduction’’ and inserting ‘‘guar-
anteed deduction’’. 
(5) Section 1398(c) of such Code is amended— 
(A) in the heading, by striking ‘‘STAND-
ARD DEDUCTION’’ and inserting ‘‘GUARANTEED 
DEDUCTION’’, 
(B) in the heading of paragraph (3), by 
striking ‘‘STANDARD DEDUCTION’’ and inserting 
‘‘GUARANTEED DEDUCTION’’, and 
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(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 
amended by striking ‘‘standard deduction’’ and in-
serting ‘‘guaranteed deduction’’. 
(9) Section 6014(b)(4) of such Code is amend-
ed 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’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2026 AND 
2027. 
(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: 
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‘‘(8) BONUS
GUARANTEED
DEDUCTION
FOR 
TAXABLE YEARS 2026 AND 2027.— 
‘‘(A) IN GENERAL.—In the case of a tax-
able year beginning after December 31, 2025, 
and before January 1, 2028, the guaranteed de-
duction shall be increased by the amount of the 
bonus guaranteed deduction. 
‘‘(B) BONUS GUARANTEED DEDUCTION.— 
For purposes of this paragraph, the bonus 
guaranteed deduction is— 
‘‘(i) $4,000 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. 
‘‘(C) ADJUSTMENT
FOR
INFLATION.—In 
the case of a taxable year beginning after 2026, 
each dollar amount in subparagraph (B) shall 
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-
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gins, determined by substituting ‘2025’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
If any increase under this subparagraph is not 
a multiple of $50, such increase shall be round-
ed to the next lowest multiple of $50. 
‘‘(D) LIMITATION ON BONUS GUARANTEED 
DEDUCTION
BASED
ON
MODIFIED
ADJUSTED 
GROSS INCOME.— 
‘‘(i) IN GENERAL.—The bonus guar-
anteed deduction determined under sub-
paragraph (B) shall be reduced (but not 
below zero) by 5 percent of so much of the 
taxpayer’s modified adjusted gross income 
as exceeds the threshold amount. For pur-
poses of the preceding sentence, the term 
‘modified adjusted gross income’ means 
adjusted gross 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)), 
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‘‘(II) $300,000 in the case of a 
head of household, and 
‘‘(III) $200,000 in any other 
case.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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