A bill to amend the Internal Revenue Code of 1986 to exclude military bonuses from gross income.

This bill (S 1856) would amend the tax code to exclude certain military bonuses from being counted as taxable income. Specifically, it changes Internal Revenue Code Section 134 to remove bonuses paid to active-duty service members under Chapter 5 of Title 37, U.S. Code, from gross income calculations. The change would apply to tax returns filed for 2025 and later tax years. It directly affects service members receiving these specific bonuses by potentially reducing their federal tax burden.