This bill creates a 50% tax credit for qualified infertility treatments, allowing eligible individuals to reduce their federal income tax by half their eligible expenses. It directly affects people diagnosed with infertility or those needing fertility preservation (e.g., before cancer treatment) who pay for physician-provided care. The credit is capped at $5,000 annually (adjusted for inflation), phases out for taxpayers with adjusted gross income over $40,000, and cannot be claimed if expenses are covered by insurance or other programs. The credit applies to tax years beginning after December 31, 2024.
This bill creates a 33% refundable tax credit for flood insurance premiums paid by homeowners for their primary residences through the National Flood Insurance Program. It directly affects homeowners in flood-prone areas who purchase required flood insurance, with the credit phased out for higher-income households (above 350% of the federal poverty line). The credit reduces income tax liability and is refundable, meaning it can result in a cash payment even if no tax is owed. The bill also prevents deducting premiums covered by the credit and establishes advance payments through the IRS to provide upfront financial assistance.
This bill creates a 50% tax credit for individuals purchasing qualified mobility devices, such as wheelchairs, walkers, canes, braces, or prosthetics. The credit applies to costs paid after the bill's enactment, covers up to three devices per year, and prevents double benefits by reducing other deductions for the same expenses. It directly affects people who buy these devices for mobility needs, allowing them to claim the credit on their federal income tax returns. The credit is designed to offset out-of-pocket costs for essential mobility equipment.
This bill eliminates federal income tax on Social Security benefits for seniors. It repeals the current tax treatment of Social Security payments by amending the Internal Revenue Code, meaning seniors receiving benefits would no longer pay taxes on those payments. To protect Social Security trust funds from revenue loss, the bill appropriates funds from the Treasury equal to the lost tax revenue each year. The legislation explicitly states Congress does not intend to use tax increases to cover these costs.
HR 823, the Heroes’ Tax Exemption Act of 2025, would exempt active duty members of the U.S. Armed Forces from federal income tax on their military earnings. The bill adds a new section (139J) to the Internal Revenue Code, removing active duty pay from taxable income for service members. This change directly affects current active duty personnel, not veterans or reservists, and applies to income earned after the second October following the bill's enactment. The provision modifies the tax code without altering other tax rules or creating new administrative requirements. The bill focuses solely on removing income tax liability for active duty military compensation.
This bill allows disaster victims to use their previous year's income instead of current year's income when calculating eligibility for the child tax credit and earned income credit. It directly affects taxpayers whose homes or workplaces were in a federally declared disaster zone during the disaster period, or those displaced from their homes due to the disaster. Key provisions let eligible individuals elect to substitute their prior taxable year's earned income for the current year in credit calculations, simplifying access to relief after income disruptions. The changes apply to tax years beginning after December 31, 2024.
This bill would change federal tax rules by excluding overtime pay from taxable income. Specifically, it adds a new section to the tax code stating that overtime compensation required under the Fair Labor Standards Act (FLSA) is not included in gross income for tax purposes. This directly affects hourly workers who earn overtime pay under FLSA protections, meaning they would keep more of their overtime earnings without it being taxed as part of their regular income. The change applies to overtime received after the bill's enactment date.
HR 2655 would end the federal income tax on unemployment compensation for most recipients starting in 2025. It amends the tax code to remove the requirement that unemployment benefits be included in taxable income after December 31, 2024. This means individuals receiving unemployment benefits in 2025 or later would not owe federal income tax on those payments. The change applies to all eligible unemployment benefits received after the 2024 deadline, effectively sunsetting the existing tax treatment.
This bill provides tax relief for small businesses by creating a graduated corporate tax rate, where businesses with taxable income under $5 million would pay 18% on the first $400,000 of income and 21% on the remainder. It establishes special tax treatment for investment management services provided through partnership structures, reclassifying certain capital gains and losses as ordinary income or loss for these specific partnerships. The bill also includes an enhanced deduction for lower-income self-employed individuals with adjusted gross income under $400,000 and increases the excise tax on corporate stock repurchases from 1% to 1.5%. These provisions primarily affect small businesses, small business owners, and investment management professionals operating through partnership structures.
This bill allows workers to deduct up to 15% of their non-bonus wages as a tax deduction for bonuses received from an employer. It directly affects individual workers earning bonuses, with income limits: $100,000 for single filers, $150,000 for heads of household, and $200,000 for married couples filing jointly. The deduction expires after December 31, 2029, and modifies tax forms to include this provision without affecting itemized deduction limits. It applies to bonuses received after the bill's enactment date.
