The WRCR Act of 2025 expands the Earned Income Tax Credit (EITC) to include qualifying students who meet specific criteria, such as receiving a Federal Pell Grant or having household income below 300% of the poverty line. It lowers the age requirement for eligibility from 25 to 18 and creates a special rule treating certain care-giving and learning activities as "compensated work" for EITC purposes. The bill increases credit percentages for certain taxpayers, modifies phaseout amounts to $4,000 (single filers) and $30,000 (joint filers), and establishes an advance payment system allowing monthly EITC payments up to 75% of the estimated credit. These changes directly affect low-income workers, students, and families with children who qualify for the EITC, with the advance payments beginning in 2026 for taxable years after 2024.
This bill increases the income limit for deducting mortgage insurance premiums on federal income taxes. It doubles the cap from $100,000 (or $50,000 for married filing separately) to $200,000 (or $100,000 for married filing separately) under IRS Code Section 163(h)(3)(E), making the deduction permanent for qualifying taxpayers. The change directly affects middle-income homeowners who pay mortgage insurance premiums and itemize deductions on their tax returns. The policy takes effect for tax years beginning after December 31, 2025.
HR 2621, the REAL AMERICA Act, creates two new tax deductions: one for cash tips reported to employers (with an income limit of $450,000 for individuals or $900,000 for joint returns) and another for qualified overtime compensation paid under the Fair Labor Standards Act. It also changes tax treatment for partners providing investment management services to partnerships, requiring certain gains to be treated as ordinary income rather than capital gains. The bill repeals the requirement to include Social Security benefits in gross income while providing funding to maintain Social Security trust fund balances. These changes would primarily affect taxpayers who earn cash tips, receive overtime pay, or work in investment management roles within partnerships.
The American Family Act (HR 2763) establishes a new refundable child tax credit that provides monthly payments to eligible families with children. It would pay $300 per month for each child under age 6 and $360 per month (120% of $300) for each child age 6 or older, with income limits of $150,000 for joint filers and $112,500 for other filers. The bill creates a "period of presumptive eligibility" to determine eligibility for monthly payments, allowing families to receive advance payments based on information from previous tax returns. This would directly affect millions of families with children who meet the income requirements, providing more consistent financial support throughout the year rather than an annual tax credit.
The PHIT Act of 2025 allows taxpayers to deduct certain fitness-related expenses as medical costs on their federal tax returns. It directly affects individuals and families who pay for qualifying physical activity programs, such as gym memberships, fitness classes, or approved equipment. Key provisions include setting annual limits ($1,000 per person or $2,000 for joint returns), defining eligible fitness facilities (excluding golf courses or private clubs), and specifying that equipment must be used exclusively for physical activity. The bill amends the Internal Revenue Code to treat these expenses as deductible medical costs, effective for taxable years after its enactment.
This bill changes how married couples filing jointly can deduct student loan interest on their federal taxes. Currently, the deduction limit of $2,500 applies to the household as a whole. The bill would amend the tax code to apply the $2,500 limit separately to each spouse, meaning both partners could each deduct up to $2,500 in interest. This directly affects married couples with student loans who file jointly, providing them with a larger potential tax benefit. The change takes effect for taxable years beginning after December 31, 2024.
This bill would increase the Social Security tax wage base to $400,000, meaning income above this threshold would no longer be subject to Social Security tax. It would also impose a new 1.2% tax on wages exceeding $400,000 (with $500,000 for joint returns and $250,000 for married filing separately), and modify the net investment income tax to include a 13.6% additional tax on income above these thresholds. The bill would direct 71.3% of these new taxes to the Old-Age and Survivors Insurance Trust Fund, 10.3% to the Disability Insurance Trust Fund, and 28.7% to the Hospital Insurance Trust Fund. These changes would apply to taxable years beginning after December 31, 2025.
HR 5019, the CEO Accountability and Responsibility Act, would require publicly traded corporations to pay higher federal income taxes based on their CEO-to-median-employee pay ratio. Specifically, corporations with a ratio exceeding 100:1 would face incremental tax rate increases (up to 3 percentage points for ratios over 400:1), with additional tax hikes if they reduce U.S. full-time staff while increasing contracted or foreign workers. The bill also directs federal agencies to prioritize contracting with companies maintaining a pay ratio below 50:1. These provisions directly affect publicly traded corporations subject to U.S. income tax, altering their tax liability based on pay equity metrics rather than revenue or profits.
HR 5382, the Health CARE Training Act, requires health profession opportunity grant programs to provide participants with training hours matching their state's certification standards (or a comparable amount if no standard exists). It directly affects individuals training for healthcare jobs through these federal grant programs. The bill's key provision excludes cash stipends and emergency assistance paid under these programs from federal income tax, meaning recipients won’t pay taxes on these payments. The training requirement and tax exclusion both take effect on October 1, 2025.
This bill excludes reimbursements received by individuals for cleaning up PFAS contamination from their taxable income under the federal tax code. It directly affects people who were paid back for remediation costs related to "forever chemicals" (PFAS) in their property. The key provision adds a new tax code section (139M) to ensure these specific reimbursements are not counted as income, reducing tax liability for affected individuals. The rule applies to reimbursements received in tax years starting after December 31, 2020.
