Budget & Taxes (Income Tax)

This bill updates D.C.'s income tax code to align with recent federal tax changes, specifically adjusting standard deduction amounts for 2025 and establishing annual cost-of-living adjustments. It directly affects D.C. residents filing income taxes who claim standard deductions, setting new base amounts: $15,000 for single filers, $22,500 for heads of household, and $30,000 for joint filers (with future increases tied to inflation). The bill replaces outdated references to federal tax code sections with current standards and expands "married individuals" to include "registered domestic partners" for deduction eligibility. It takes effect immediately for the 2025 tax year.

This bill temporarily revises D.C. income tax rules to better align with federal tax law for 2025. It establishes specific standard deduction amounts for D.C. taxpayers based on filing status: $15,000 for single filers, $22,500 for heads of household, and $30,000 for married couples filing jointly. Starting in 2026, these amounts will adjust annually based on cost-of-living changes (rounded to the nearest $50). The bill directly affects D.C. residents filing individual income tax returns, modifying how they calculate taxable income. The changes are temporary and apply only to the 2025 tax year.