Tax Cuts for Working Families Act

HR 3936, the "Tax Cuts for Working Families Act," renames the standard deduction as a "guaranteed deduction" throughout tax law and adds a temporary bonus deduction for 2024-2025. It increases the deduction by $4,000 for joint filers/surviving spouses, $3,000 for heads of household, and $2,000 for others, with annual inflation adjustments. The bonus deduction phases out for higher earners: 5% reduction above $400,000 (joint) or $300,000 (head of household) modified adjusted gross income. This bill directly affects most individual taxpayers who claim the standard deduction, offering temporary tax relief for working families during 2024-2025. The changes apply to taxable years beginning after December 31, 2023.