HR 6645, the Working Families Disaster Tax Relief Act, allows individuals affected by federally declared disasters to use their *previous year's income* to qualify for the Child Tax Credit and Earned Income Credit. This helps families who lost income due to a disaster (like a hurricane or wildfire) but would qualify for tax credits if their income from the prior year was used instead. The bill amends tax code sections to create a simple election process for "disaster-affected taxpayers" - defined as those whose home or workplace was in a declared disaster zone during the disaster period. It applies to tax years starting after December 31, 2024, and does not change the credit amounts, only the income calculation method for affected individuals.
This bill creates a tax deduction for certain reported cash tips received by workers in occupations that traditionally rely on tips, such as servers and bartenders. It allows a deduction of up to $35,000 per year for tips reported to employers (e.g., via Form 4137), but phases out for individuals earning over $50,000 annually (single) or $100,000 (joint). The deduction requires a Social Security number and applies only to taxable years starting in 2026 through 2028, with a Treasury pilot program to evaluate extending it permanently. It excludes tips from occupations not traditionally tip-based and mandates annual reviews of living wage thresholds.
HR 5898, the Lejeune Untaxed Compensation and Settlements Act of 2025, ensures that compensation received under the Camp Lejeune Justice Act of 2022 is not subject to federal income tax. It directly affects individuals who filed lawsuits related to water contamination at Camp Lejeune, excluding their settlement amounts from taxable income. The bill amends the Internal Revenue Code to add a specific exclusion for these damages under Section 104(a). This change applies to settlements received after the bill’s enactment, providing tax relief for affected victims.
The End Child Poverty Act (HR 6235) establishes a universal child assistance program providing monthly payments to children under 19 who are U.S. citizens, nationals, or qualified aliens residing in the U.S. Payments equal 1/12 of the annual poverty guideline difference between a two-person household and a single individual, adjusted annually using federal poverty guidelines. The Social Security Administration’s new Office of Universal Child Assistance will automatically identify eligible children via IRS data sharing (with an opt-out option) and issue payments starting in 2026, including reconciliation payments when updated poverty guidelines are published. The bill also terminates the Child Tax Credit and Earned Income Tax Credit after 2025, replacing them with new refundable tax credits for adult dependents and families.
HR 6227, the Human Trafficking Survivor Tax Relief Act, exempts certain compensation received by human trafficking survivors from federal income tax. Specifically, it excludes restitution or civil damages awarded under federal trafficking laws (18 U.S.C. §§1593 and 1595) from taxable income. This applies to payments survivors receive as compensation for trafficking, including criminal restitution or civil damages from lawsuits. The bill directly benefits survivors who receive these specific awards, ensuring they retain more of their compensation. The tax exclusion applies to taxable years beginning after the bill’s enactment.
This bill creates a new tax credit for working caregivers of dependents with long-term care needs. It allows eligible caregivers (with over $7,500 in earned income) to claim a credit equal to 30% of qualified expenses exceeding $2,000, up to a $10,000 annual maximum. Qualified expenses include human assistance, home modifications, respite care, lost wages, and medical supplies for dependents certified by a healthcare provider as needing long-term care (e.g., due to functional limitations or severe health conditions). The credit phases out for higher-income taxpayers and applies to taxable years beginning after December 2025.
This bill would provide one-time refunds to eligible U.S. taxpayers for tariffs imposed without congressional approval, totaling up to $231 billion. Eligible taxpayers (those who filed income tax returns for the most recent year with adjusted gross income under $400,000) would receive payments based on filing status - ranging from 100% to 200% of a calculated base amount. Families with children would also receive an additional $125 per qualified child, funded by excluding high-income earners from the refund pool. All payments are capped at the $231 billion total, with automatic distribution via direct deposit or check.
HR 7034 would remove the current $250,000 (single filers) and $500,000 (married couples) tax exclusion limit for capital gains when selling a primary residence. This change would allow all homeowners to exclude their full profit from federal income tax upon selling their main home, regardless of the sale price. The bill amends Section 121 of the Internal Revenue Code to eliminate the dollar caps and adjusts related provisions to reflect this change. It directly affects homeowners who sell their primary residence, making the tax exclusion fully unlimited for qualifying sales after the bill's enactment.
The Multigenerational Family Tax Credit Act of 2026 would create a tax credit for homeowners who pay for home modifications to improve safety, accessibility, or mobility for elderly or disabled relatives living with them. The credit covers up to $8,000 per year, but is reduced for taxpayers earning over $200,000 (or $400,000 for joint filers). Half of the credit would be refundable, meaning it could be paid even if the taxpayer owes no income tax. This credit applies to expenses incurred after December 31, 2026, and directly benefits families supporting aging or disabled relatives in multigenerational households.
The NEST Act creates a new tax-advantaged savings account specifically for first-time homebuyers, allowing them to deduct contributions from their taxable income. Contributions would be limited to 20% of a state's median home price, with tax-free distributions available for qualified home ownership expenses like down payments and closing costs. Employer contributions to these accounts would be excluded from both income tax and employment taxes. The bill includes safeguards such as a 20% additional tax on funds withdrawn for non-homebuying purposes and rules preventing misuse of the accounts. It would take effect for taxable years beginning after December 31, 2025.
