Holiday Bonus Tax Relief Act
Official: Holiday Bonus Tax Relief Act of 2025
IntroducedDecember 18, 2025
Why This Matters
The Holiday Bonus Tax Relief Act allows employees to keep more of their holiday bonuses by not counting them as taxable income. This change helps workers keep more money during the holiday season.
If you receive a holiday bonus, you could save money on your taxes by excluding it from your taxable income.
Affects: Employees who receive holiday bonuses from their employers.
What changes is this bill making?
1. This bill excludes holiday bonuses from taxable income. 2. Employees can exclude up to $2,500 in holiday bonuses from their gross income. 3. The exclusion applies to bonuses paid in January, November, or December. 4. The exclusion amount will increase with inflation starting in 2026. 5. Employers must report holiday bonuses on employee W-2 forms.
Who is affected?
Employees who receive holiday bonuses from their employers.