Bonus Tax Deduction Bill
Official: Working Class Bonus Tax Relief Act of 2025
This bill helps workers keep more of their bonus money by allowing them to deduct a portion from their taxes. It aims to provide financial relief for many employees receiving bonuses.
Working Class Bonus Tax Relief Act of 2025This bill allows a tax deduction for bonuses received by an individual, subject to income limitations, through 2029. The amount of the deduction may not exceed 15% of the individual’s regular wages from the same employer. Further, the deduction is not allowed for individuals with annual adjusted gross income exceeding $100,000 (or $150,000 for heads of the household and $200,000 for married couples filing a joint return).
1. This bill allows workers to deduct part of their bonuses from their taxable income. 2. The deduction can be up to 15 percent of a worker's regular wages from the same employer. 3. Higher earners, such as couples making over $200,000, cannot use this deduction. 4. The deduction is available for bonuses received until the end of 2029. 5. The bill also updates tax rules for those who do not itemize deductions.
Workers who receive bonuses and earn below certain income limits.