The EITC Lookback Act (HR 2898) allows low-income workers with fluctuating income to use their previous tax year's earnings when calculating their Earned Income Tax Credit (EITC), instead of their current year's lower earnings. It directly affects qualifying taxpayers whose income drops from one year to the next, such as those facing temporary job loss or reduced hours. The key provision lets eligible individuals choose to substitute their prior year's earned income for the current year's in determining their EITC amount. This change applies to tax years beginning after December 31, 2024, providing potential tax relief for workers experiencing income volatility.
This bill would permanently expand the Child Tax Credit to provide $4,200 per year for each child under age 6 and $3,000 per year for each child ages 6-17. It also creates a new $2,800 credit for pregnant mothers with unborn children at 20 weeks gestation or more, requiring physician certification of gestational age. Both credits phase out for higher-income taxpayers, with the Child Tax Credit phasing out at $400,000 for joint filers and $200,000 for other taxpayers. The bill would affect low and middle-income families with children, particularly those with young children or who are pregnant, with changes applying to taxable years beginning after December 31, 2025.
HR 320, the "Make Marriage Great Again Act of 2025," eliminates the tax "marriage penalty" for married couples filing jointly. The bill modifies the federal income tax code by doubling the income thresholds for married couples' tax brackets (using the brackets that apply to single filers), effectively making the tax rates for married couples more favorable. This change directly affects married couples filing jointly whose combined income would have previously pushed them into a higher tax bracket than if they filed separately. The policy change applies to taxable years beginning after December 31, 2024, and removes specific provisions that previously created the penalty.
The Universal Savings Account Act of 2025 creates a new tax-advantaged savings account type (Universal Savings Account or USA) for individual taxpayers. These accounts would be exempt from income tax on growth and earnings, with annual contribution limits starting at $10,000 (capped at $25,000) and adjusted annually for inflation. The bill directly affects individual savers who open USAs through qualifying financial institutions (like banks), subject to rules requiring cash-only contributions, non-forfeitable balances, and restrictions on life insurance investments. It amends the Internal Revenue Code to establish this new account structure, effective for taxable years after December 31, 2024.
This bill exempts regular active-duty military compensation from federal income tax for service members, effective for 2025 tax years. It directly affects active-duty members of the Armed Forces, excluding their regular pay from taxable income under new IRS rules. A key exception prevents this tax exclusion from applying to individuals who served as Members of Congress within the 10 years prior to receiving their military pay. The bill also requires the Treasury to adjust tax withholding procedures to reflect this exclusion. (Note: The "DOGE Service" provision appears satirical and unrelated to the core tax policy.)
S 2475, the American Worker Rebate Act of 2025, provides tax rebates to eligible U.S. workers using revenue from import tariffs. It offers rebates of at least $600 per person (or $1,200 for joint filers), plus $600 per qualifying child, based on either a fixed amount or a share of tariff revenue collected after January 20, 2025. The rebate phases out for higher earners ($75,000+ single filers, $112,500 head of household, $150,000 joint filers) and requires Social Security numbers for eligibility. Rebates are paid as advance refunds by 2026, with no interest on overpayments.
The Billionaires Income Tax Act (S 2845) would require high-net-worth individuals with at least $1 billion in assets or $100 million in annual income (or $500 million/$50 million for married filing separately) to pay taxes annually on investment gains rather than deferring taxes until assets are sold. It implements "mark-to-market" taxation for tradable assets like stocks and closes loopholes that allow tax-free transfers of assets to heirs, eliminating strategies like "buy, borrow, die." The bill targets "applicable taxpayers" by requiring annual tax payments on investment gains and modifies special tax provisions for investments in small business stock and qualified opportunity funds. The law would apply to individuals meeting either the asset or income test for three consecutive years, with specific rules for married couples and trusts.
HR 904, titled "No Tax on Social Security," would amend the tax code to exclude Social Security benefits from taxable income for future tax years. This change would directly affect millions of Social Security recipients, including retirees, disabled individuals, and survivors, who currently may pay federal income tax on a portion of their benefits. The bill includes a funding provision to appropriate money to Social Security trust funds, replacing revenue lost from the tax exclusion. The policy would take effect for taxable years beginning after the bill's enactment.
The Lower Your Taxes Act expands tax credits for low and middle-income households, primarily affecting workers and families with children. It significantly increases the Earned Income Tax Credit, raising the maximum credit percentage from 34% to 68% and increasing the earned income threshold from $6,330 to $19,000. The bill also establishes a new refundable child tax credit with monthly advance payments of $300 for children under 6 and $350 for children 6-17, with income limits. For high-income earners, it changes capital gains tax rates, and for corporations, it increases tax rates from 21% to 28%.
HR 2398, the Rural Veterinary Workforce Act, amends federal tax law to exempt certain student loan repayment or forgiveness assistance from income tax for veterinarians working in rural areas. It specifically expands existing tax exclusions to include programs under the National Agricultural Research, Extension, and Teaching Policy Act (7 U.S.C. 3151a) and similar state-level programs designed to increase rural veterinary access. This change directly affects veterinarians participating in qualifying loan repayment or forgiveness programs in states prioritizing rural veterinary services. The policy change modifies IRS tax treatment to reduce the financial burden on veterinarians serving underserved rural communities.
