This bill allows qualifying workers to exclude income from a secondary job from their taxable income and payroll taxes. To qualify, workers must designate a primary employer (based on hourly work ≥2,080 hours) and earn secondary income below phase-out thresholds ($100,000 individual/$150,000 married joint filers). The exclusion phases out for income above these thresholds and expires after five years. It directly affects workers with a second job who meet the primary employer requirement, changing how secondary job earnings are taxed under the Internal Revenue Code.
This bill provides tax relief to individuals affected by Hurricanes Helene and Milton in designated disaster areas. It allows affected taxpayers to use their previous year's income to calculate their Earned Income Credit if their current year income is lower, and increases limits on charitable contributions made for hurricane relief efforts, with some contributions treated as made in 2024. The bill also establishes special rules for accessing retirement funds without penalties, including the ability to repay withdrawals within 3 years. These provisions apply to individuals whose principal residence was in a declared disaster area during the incident period (September 28, 2024 - November 2, 2024).
The Disaster Resiliency and Coverage Act of 2025 creates a federal program that provides grants to states and tribal governments to help homeowners in high-risk disaster areas make their homes more resilient. The program covers specific mitigation activities like reinforcing roofs, installing flood barriers, and creating fire-resistant features, with a $10,000 per household limit. Homeowners must have an adjusted gross income under $250,000 ($500,000 for joint returns) to qualify. The bill also includes tax benefits, allowing these grant amounts to be excluded from gross income and providing a 30% tax credit for qualifying mitigation expenditures.
HR 314, the Empowering Nonprofits Act, reduces the cost-sharing requirement for certain nonprofit organizations receiving federal grants. Specifically, it lowers the nonprofit's share of grant costs by 25% for five years after enactment for organizations located in states where over 20% of people live below the federal poverty line. This applies only to 501(c)(3) nonprofits that are exempt from federal income tax. The bill directly affects eligible nonprofits in high-poverty states by making federal grants more accessible with lower upfront financial obligations. It modifies existing grant rules without creating new programs or changing eligibility for other organizations.
The EITC Modernization Act expands the Earned Income Tax Credit to include more types of dependents (not just "qualifying children" but also "qualifying dependents" including aged dependents and students) and creates a new category for qualifying students who receive Federal Pell Grants or have modified adjusted gross income below 250% of the poverty line. It establishes a minimum $1,200 credit for qualifying students and individuals with certain dependents, allows recipients to receive their credit in monthly payments instead of a single annual payment, and creates new return preparation assistance programs for low-income taxpayers through the IRS. The bill also adjusts eligibility to include individuals as young as 18 without dependents (previously age 25) and adds special provisions for new parents with children born or adopted during the year. These changes aim to increase access to the credit for more working individuals and families while improving the administration of the program.
This bill amends the Internal Revenue Code to require a valid Social Security Number (SSN) for all qualifying children claimed on the Child Tax Credit. Specifically, it mandates that taxpayers must include the SSN of both the taxpayer (or both spouses on a joint return) and each qualifying child on their tax return to claim the credit. The requirement applies to all taxpayers except members of the Armed Forces (who may use a spouse's SSN), and excludes individuals without an SSN issued to a U.S. citizen or under specific Social Security Act provisions. The change takes effect for taxable years beginning after the bill's enactment date.
The Social Security Expansion Act increases Social Security benefits for retirees and disabled workers by raising the first bend point percentage from 90% to 95% and adding an 18% increase for individuals eligible after 2025. It extends benefit eligibility for children who are full-time students until age 22 (from age 19 for most children) and establishes a new minimum benefit based on years worked, with higher percentages for longer work histories (ranging from 11.25% for 11 years to 125% for 30+ years). The bill also changes the cost-of-living adjustment to use the Consumer Price Index for Elderly Consumers and adds new taxes on income above $250,000 and investment gains, increasing the tax rate on investment gains from 3.8% to 16.2%. These changes will primarily affect retirees, disabled workers, children of beneficiaries, and high-income earners.
This bill allows employees in trades requiring specialized tools (like construction) to deduct work-related expenses directly from their gross income, rather than as itemized deductions. Specifically, it creates an above-the-line deduction for construction tools, personal protective gear, and other necessary work expenses. This change exempts these costs from the usual 2% floor on miscellaneous itemized deductions. The policy affects blue-collar workers who must purchase or maintain essential equipment to perform their jobs, making these costs fully deductible starting in 2026.
More Homes on the Market Act This bill increases the amount of gain from the sale of a principal residence that an individual may exclude from gross income (for federal tax purposes). Under the bill, an individual may exclude from gross income gain from the sale of a principal residence of up to $500,000 (currently $250,000), and taxpayers who are married and file a joint federal income tax return may exclude up to $1 million (currently $500.000). The bill also requires these amounts to be adjusted annually for inflation.
This bill creates a tax exclusion for certain disaster mitigation payments received by property owners. It allows individuals to exclude from gross income funds paid by state programs (or approved entities) to make improvements that reduce damage from windstorms, earthquakes, or wildfires. The exclusion applies to payments made for specific property upgrades like storm shutters or fire-resistant roofing. The change takes effect for 2021+ tax years and includes a retroactive option for taxpayers to amend prior returns. It directly affects homeowners participating in qualifying state disaster resilience programs.
