The Mobile Workforce State Income Tax Simplification Act of 2026 restricts state income tax collection on employees who work in multiple states, limiting taxation to only the employee's home state and any other state where they perform duties for more than 30 days in a calendar year. This change directly affects multi-state workers and their employers by eliminating withholding and reporting requirements for wages earned in states where the employee does not meet the 30-day threshold. Employers are permitted to rely on employees' annual estimates of work location for tax purposes, unless the employer maintains a daily time and attendance tracking system or has actual knowledge of fraud. The bill excludes specific groups, such as professional athletes, entertainers, film production staff, and public figures, from these simplified rules, and it takes effect on January 1 of the second calendar year following its enactment.
The Stronger Start for Working Families Act amends the Internal Revenue Code to make the child tax credit fully refundable for all eligible taxpayers. By lowering the earned income threshold from $3,000 to $1, the bill removes the requirement that families must have a minimum level of earnings to receive the full credit amount. This change directly affects working families with children who previously had their refundable credit capped based on their income. The provision is scheduled to take effect for tax years beginning after December 31, 2025.
The Protecting Student Athletes from Unexpected Tax Liability Act requires companies to withhold 30 percent of income tax from payments made for a student athlete's name, image, and likeness. This rule treats these specific commercial payments as if they were standard wages, even though the athletes are not classified as employees. The bill also waives penalties for underpaid taxes in the first year a student athlete is subject to this new withholding requirement. To ensure the policy works effectively, the Treasury Department must report to Congress by 2029 on whether the 30 percent rate is appropriate and how well companies are complying with the law.
This bill creates a tax exemption for money received by individuals who participate in approved clinical trials, allowing them to keep compensation and expense reimbursements without paying federal income tax. It also ensures that these payments are not counted as income or resources when determining eligibility for federal or federally funded assistance programs. The changes apply to any payments made after December 31, 2025, and are designed to help participants in studies covering a broader range of diseases and conditions.
The Supporting Students and Families Act creates a new tax credit to help offset costs for elementary and secondary school supplies. This credit allows taxpayers to claim up to $200 for expenses related to books, supplies, and equipment for dependents attending public, private, or religious schools. The benefit is reduced for individuals with modified adjusted gross incomes exceeding $150,000 and cannot be claimed for expenses already covered by Coverdell education savings accounts. The changes will take effect for taxable years beginning after December 31, 2026.
This bill proposes to automatically increase the income thresholds used to determine how much of Social Security benefits are subject to federal income tax. Starting in 2027, the specific dollar limits would be adjusted annually based on the official cost-of-living adjustment, with any resulting amounts rounded up to the nearest hundred dollars. The change directly affects retirees and other individuals who receive Social Security payments, ensuring that the income levels triggering taxes on those benefits keep pace with inflation. By updating these thresholds, the legislation aims to prevent the taxable portion of benefits from growing disproportionately as prices rise over time.
This resolution encourages Congress to reform the tax system so that all citizens pay taxes based on their total economic gains, regardless of whether that income comes from wages or investments. It highlights current disparities where wage earners are taxed at the source while wealth from assets like stocks, real estate, and digital currencies often escapes immediate taxation through deferrals, inheritance rules, and charitable vehicles. The bill specifically urges the House Ways and Means Committee to hold hearings on these differences and calls for consistent tax treatment across all income sources to ensure fairness in funding the federal government.
The Tariff Refund Act of 2026 directs the IRS to issue refunds or credits to eligible U.S. citizens who meet specific income and residency criteria. To qualify, an individual must have an adjusted gross income below $200,000, $300,000 for heads of household, or $400,000 for joint filers, and cannot be incarcerated or claimed as a dependent on another's tax return. The bill treats these eligible taxpayers as having already paid a fixed amount of tax toward their 2025 liability, effectively refunding that sum if they have not yet paid it. Payments will be processed electronically to existing bank accounts or Treasury-sponsored accounts, with no interest applied to the refunds. The legislation also includes provisions to prevent duplicate payments and allows dependents of incarcerated individuals to receive funds if the primary earner is ineligible.
This bill proposes new restrictions on retirement savings for high-income individuals who already have large account balances. It would limit annual contributions to traditional retirement plans for taxpayers with modified adjusted gross income exceeding $225,000 to $450,000, depending on filing status, if their total retirement savings surpass a $10 million threshold. Additionally, the legislation would increase the minimum required distributions for these same individuals, forcing them to withdraw more money annually from their accounts starting in 2034. To facilitate these withdrawals, the bill requires retirement plans to allow employees to request specific lump-sum distributions and mandates higher tax withholding on these payments.
The Public Service Retirement Tax Relief Act of 2026 limits the federal income tax that individuals receiving state or local government pensions must pay. Starting in 2026, the total tax on these pensions cannot exceed $10,000 for single filers or $20,000 for married couples filing jointly. This cap is calculated by first determining the tax owed on all income except the pension, then adding the maximum allowable pension tax amount to that figure. The bill directly affects public servants who rely on pensions from state or local governments for their retirement income.