Legislative Activity

The Working Class Bonus Tax Relief Act of 2025 introduces a temporary tax deduction for employee bonuses, allowing eligible taxpayers to deduct a portion of their bonus income from their taxes. This benefit is available to both itemizers and non-itemizers, provided they meet specific income thresholds. The deduction applies to bonuses received through December 31, 2029, and includes provisions for employers to adjust tax withholding accordingly.

The Second Job Tax Relief Act of 2025 provides temporary tax relief by allowing qualifying hourly workers to exclude income earned from a second job from federal income and payroll taxes. To be eligible, taxpayers must work at least 2,080 hours for a primary employer, with the benefit phasing out for those earning between $100,000 and $150,000 in modified adjusted gross income. This five-year measure includes provisions to ensure Social Security and other trust funds remain fully funded through general treasury transfers.

The Overtime Pay Tax Relief Act of 2025 creates a new tax deduction for legally required overtime compensation, allowing eligible workers to exclude a portion of their overtime pay from taxable income. This benefit is subject to specific adjusted gross income limits and is scheduled to sunset after December 31, 2029. Additionally, the bill directs the Treasury to adjust tax withholding procedures so that workers may see the impact of this deduction directly in their paychecks.

The Seniors in the Workforce Tax Relief Act provides a temporary tax deduction for individuals aged 65 and older for the 2025 through 2029 tax years. Eligible seniors can claim up to $25,000 for single filers or $50,000 for married couples, subject to income-based phase-outs. This measure aims to provide financial relief to older workers regardless of whether they itemize their deductions.