HR 3118, the "No Tax on Overtime Act," creates a new tax deduction for workers who earn overtime pay under the Fair Labor Standards Act (FLSA). It allows taxpayers to deduct up to $100 per 100 hours of overtime (capped at 300 hours yearly) from their taxable income, with a phaseout for higher earners ($100 reduction for every $1,000 over $100,000 AGI). Employers must report overtime amounts on W-2 forms, and taxpayers must include the recipient’s Social Security number to claim the deduction. The deduction applies to tax years beginning after December 31, 2024.
HR 3769, the Dependent Income Exclusion Act of 2025, modifies tax rules to help families qualify for health insurance premium tax credits. It excludes certain income earned by dependents under age 18, or dependents aged 18-24 enrolled in approved education or job-training programs (like those under the Workforce Innovation Act), from being counted toward household income for credit calculations. The exclusion is limited to 15% of a family’s total income, and in states that haven’t expanded Medicaid, it cannot reduce household income below 100% of the federal poverty line. The bill amends the Internal Revenue Code and Affordable Care Act to implement these changes, affecting families claiming health insurance tax credits.
This bill, S 317 (Charitable Act), creates a new federal income tax deduction for charitable contributions for individuals who do not itemize deductions (the majority of taxpayers). It allows these taxpayers to deduct up to one-third of their standard deduction amount for charitable gifts in 2026 and 2027. The bill also eliminates penalties related to charitable deduction errors under tax code sections 6662 and 6664. The changes apply to tax returns filed for 2026 and 2027 tax years.
The All-Americans Tax Relief Act of 2025 would significantly expand tax benefits for low-to-moderate income individuals and families. Key provisions include making the Child Tax Credit fully refundable (allowing payments even if taxpayers owe no income tax), expanding the Earned Income Tax Credit with higher maximum amounts, and creating new deductions for medical expenses, daycare, commuting, tutoring, and credit card interest. The bill would also establish a rent deduction for primary residences and exclude certain discharged debt from taxable income. These changes would apply to tax years beginning after December 31, 2026, and would primarily benefit working families with children and lower-income taxpayers.
HJRES 14 proposes repealing the 16th Amendment to the U.S. Constitution, which currently authorizes Congress to levy income taxes. If enacted, this would eliminate the federal government's power to collect income taxes from all sources, except during a formally declared war by Congress. The bill includes a two-year implementation period after ratification and requires the Treasury Secretary to submit a report on necessary legislative changes within 180 days of ratification. This proposal directly affects all U.S. taxpayers and the federal tax system, but remains a formal constitutional amendment proposal pending ratification by 38 states.
HR 715, the BNA Fairness Act, amends the tax code to exclude the basic needs allowance provided to members of the Armed Forces from taxable income. This allowance, paid for daily living expenses like food and housing, directly affects active-duty service members who receive it. The bill adds a specific provision clarifying that this allowance qualifies as a non-taxable "qualified military benefit" under existing tax law. The change takes effect for tax years after the bill becomes law, ensuring service members no longer pay income tax on this specific benefit.
HR 6781, the Trump Tariff Rebate Act, increases the standard federal income tax deduction for taxpayers filing in 2026 and 2027. It adds $4,000 to the standard deduction for joint filers or surviving spouses, $3,000 for heads of household, and $2,000 for other filers during those tax years. The bill applies only to the 2026 and 2027 tax returns (filed in 2027 and 2028) and provides a temporary tax benefit based on filing status. It does not relate to actual tariff refunds but uses "tariff rebate" as a defined tax provision name.
This bill expands the Earned Income Tax Credit (EITC) for low-income workers by lowering the minimum age to claim the credit from 25 to 19 (with exceptions for students, former foster youth, and homeless youth), removing the maximum age limit of 65, and doubling the credit percentage from 7.65% to 15.3%. It also increases the income thresholds for eligibility, raising the phaseout starting point from $4,220 to $9,820 for single filers and $5,280 to $11,610 for joint returns. The credit amounts and income limits will now adjust annually for inflation using specific Consumer Price Index (CPI) benchmarks. Additionally, taxpayers can elect to use their prior year’s earned income to calculate the credit if it was higher than the current year’s, effective for 2026 tax returns.
This bill exempts active and reserve uniformed service members' military compensation from federal income tax. It directly affects service members by excluding their active-duty pay from taxable income under a new Section 139J in the tax code, while explicitly excluding retirement pensions from this benefit. The key mechanism is a tax exclusion for current service pay, effective for taxable years after enactment. The bill does not alter retirement pay taxation or apply to civilian employees.
This bill modifies U.S. tax rules to exclude certain payments made to foreign subsidiaries or affiliates from being classified as "base erosion payments" (payments that reduce U.S. tax revenue). It applies specifically to multinational corporations making cross-border payments to foreign entities that pay at least 15% effective foreign income tax. To qualify, companies must prove the foreign entity’s tax rate meets the threshold using standard financial statements with adjustments for items like dividends or currency gains. The policy change aims to prevent double taxation on such payments while maintaining anti-avoidance safeguards.
