Working Class Bonus Tax Relief Act of 2025

Bill: 119-hr-557
Sponsor: full_name: Rep. Bacon, Don [R-NE-2]
Introduced: 2025-01-20
Policy area: Taxation
Latest action: action_date: 2025-01-20
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-01-20
action_desc: Introduced in House
text: <p><strong>Working Class Bonus Tax Relief Act of 2025</strong></p><p>This bill allows a tax deduction for bonuses received by an individual, subject to income limitations, through 2029. The amount of the deduction may not exceed 15% of the individual’s regular wages from the same employer. Further, the deduction is not allowed for individuals with annual adjusted gross&nbsp;income exceeding $100,000 (or $150,000 for heads of the household and $200,000 for married couples filing a joint return).&nbsp;&nbsp;</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 557 IN THE HOUSE OF REPRESENTATIVES January 20, 2025 Mr. Bacon introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts received as a bonus.

1. Short title This Act may be cited as the Working Class Bonus Tax Relief Act of 2025 . 2. Deduction for bonuses (a) In general (1) Deduction allowed Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: 224. Bonuses (a) In general There shall be allowed as a deduction an amount equal to so much of any bonus received by an individual as does not exceed 15 percent of such individual’s non-bonus wages from the same employer for the taxable year. (b) Limitation No deduction shall be allowed under subsection (a) for any taxpayer whose adjusted gross income for the taxable year exceeds— (1) in the case of a married couple filing jointly, $200,000, (2) in the case of a head of household, $150,000, or (3) in the case of any other individual, $100,000. (c) Termination No deduction shall be allowed under subsection (a) for any amounts received after December 31, 2029. . (2) Conforming amendment The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: Sec. 224. Bonuses. . (b) Deduction allowed to non-Itemizers Section 63(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting and , and by adding at the end the following new paragraph: (5) the deduction provided in section 224. . (c) Non-Application of certain limitations for itemizers (1) Deduction not treated as a miscellaneous itemized deduction Section 67(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting , and , and by adding at the end the following new paragraph: (13) the deduction under section 224 (relating to bonuses). . (2) Deduction not taken into account under overall limitation Section 68(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting , and , and by adding at the end the following new paragraph: (4) the deduction under section 224 (relating to bonuses). . (d) Withholding The Secretary of the Treasury (or the Secretary's delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account the deduction allowed under section 224 of such Code (as added by this Act). (e) Effective date The amendments made by this section shall apply to amounts received after the date of the enactment of this Act.