HR 904, titled "No Tax on Social Security," would amend the tax code to exclude Social Security benefits from taxable income for future tax years. This change would directly affect millions of Social Security recipients, including retirees, disabled individuals, and survivors, who currently may pay federal income tax on a portion of their benefits. The bill includes a funding provision to appropriate money to Social Security trust funds, replacing revenue lost from the tax exclusion. The policy would take effect for taxable years beginning after the bill's enactment.
The Lower Your Taxes Act expands tax credits for low and middle-income households, primarily affecting workers and families with children. It significantly increases the Earned Income Tax Credit, raising the maximum credit percentage from 34% to 68% and increasing the earned income threshold from $6,330 to $19,000. The bill also establishes a new refundable child tax credit with monthly advance payments of $300 for children under 6 and $350 for children 6-17, with income limits. For high-income earners, it changes capital gains tax rates, and for corporations, it increases tax rates from 21% to 28%.
HR 2398, the Rural Veterinary Workforce Act, amends federal tax law to exempt certain student loan repayment or forgiveness assistance from income tax for veterinarians working in rural areas. It specifically expands existing tax exclusions to include programs under the National Agricultural Research, Extension, and Teaching Policy Act (7 U.S.C. 3151a) and similar state-level programs designed to increase rural veterinary access. This change directly affects veterinarians participating in qualifying loan repayment or forgiveness programs in states prioritizing rural veterinary services. The policy change modifies IRS tax treatment to reduce the financial burden on veterinarians serving underserved rural communities.
The Survivor Justice Tax Prevention Act amends the tax code to exclude non-punitive damages from income tax for survivors of sexual violence, including compensation for sexual acts or contact (like assault), in addition to existing exclusions for physical injuries. It removes the requirement for medical records to prove the damages relate to sexual acts or contact, allowing survivors to rely on court judgments or settlement agreements stating the damages are for such acts. The policy change applies to damages received after the law's enactment, with specific rules for existing cases, and mandates a public awareness campaign by the Treasury and Justice Department to inform survivors about this tax exclusion. This directly benefits survivors receiving civil damages in sexual violence cases by reducing their tax burden.
This bill amends the tax code to exclude certain loan repayment assistance from taxable income for veterinary students participating in qualifying programs. It specifically expands the exclusion to cover assistance provided under the National Agricultural Research, Extension, and Teaching Policy Act of 1977 and similar state programs designed to increase veterinary access in rural areas. Veterinary students who receive this assistance through these designated programs will not owe income tax on the funds. The change applies to assistance received in taxable years beginning after December 31, 2025.
HR 801, the Charitable Act, creates a new tax deduction for individuals who do not itemize deductions on their federal tax returns. It allows these taxpayers to deduct up to one-third of their standard deduction amount for charitable contributions in 2026 and 2027. The bill directly affects non-itemizing individual taxpayers by providing a limited, direct deduction for charitable giving without requiring them to itemize. The deduction is capped at 1/3 of the standard deduction amount for those tax years, effective for returns filed in 2027 and 2028.
The Billionaires Income Tax Act (HR 5427) would require high-net-worth individuals with annual income over $100 million or assets over $1 billion to pay taxes annually on investment gains rather than deferring taxes until assets are sold. It eliminates the "buy, borrow, die" tax strategy by implementing annual mark-to-market taxation of investment assets and closing loopholes that allow tax-free transfers of appreciated assets to heirs. The bill applies to individuals meeting specific income or asset thresholds, as well as applicable trusts and entities with significant ownership interests, with provisions taking effect for taxable years beginning after December 31, 2025.
This bill amends the federal tax code to exclude certain overtime pay from taxable income. It directly affects workers who earn overtime under the Fair Labor Standards Act (FLSA) or through specific employer-employee agreements meeting defined conditions (like exceeding 40 hours per week or railway work standards). The key provision defines "qualified overtime compensation" to exclude this pay from federal income tax calculations. The change applies to tax returns filed for 2025 and later. This creates a concrete tax exemption for qualifying overtime earnings.
HR 1833, the Working Families Tax Cut Act, renames the "standard deduction" to "guaranteed deduction" in the tax code but does not change existing deduction amounts. It adds a temporary "bonus guaranteed deduction" for tax years 2026-2027, increasing the deduction by $4,000 for joint returns/surviving spouses, $3,000 for heads of household, and $2,000 for others. This bonus deduction phases out for taxpayers with modified adjusted gross income above $400,000 (joint), $300,000 (head of household), or $200,000 (other filers). The bill affects all individual taxpayers who claim the deduction, with the new provisions applying to returns filed for 2026 and 2027.
The Credit for Caring Act of 2025 creates a federal tax credit for family caregivers of elderly or disabled relatives. It allows eligible caregivers (with over $7,500 in earned income) to claim a credit equal to 30% of qualified caregiving expenses exceeding $2,000, capped at $5,000 per year. Qualified expenses include human assistance, home modifications, respite care, counseling, lost wages for unpaid time off, and transportation, all requiring certification from a licensed healthcare provider that the care recipient has long-term needs. The credit phases out for higher earners (over $75,000 single/$150,000 joint) and requires documentation of expenses and care recipient certification.
