This bill changes tax rules so dental school faculty receiving loan repayment assistance through specific federal programs no longer have to pay income tax on those payments. It directly affects dental faculty at institutions participating in the Dental Faculty Development Program under the Public Health Service Act. The key provision amends tax law to exclude these loan repayments from taxable income, reducing their financial burden. The bill also requires a report to Congress on how many faculty remain in teaching roles after receiving this assistance.
HR 1306, the Tax Fairness for Survivors Act, exempts certain payments received by survivors of sexual assault or harassment from federal income taxation. Specifically, it excludes from gross income any judgment, award, or settlement (including backpay, frontpay, punitive damages, and attorney fees) related to these claims, as defined under federal, tribal, state, or local law. The bill amends multiple tax codes (including income tax, Social Security, railroad retirement, unemployment, and wage withholding) to ensure these excluded payments are not subject to those taxes. This directly affects survivors who receive such compensation through legal settlements or court awards. The exemption applies to taxable years beginning after the bill's enactment.
This bill treats Kenya, Mali, Burkina Faso, and Chad as combat zones for purposes of determining eligibility for certain federal tax benefits available to members of the U.S. Armed Forces. (Conditions apply.) Specifically, under the bill, a qualified hazardous duty area is treated as a combat zone for purposes of determining the filing status of an individual whose spouse is missing in action; excluding compensation received by a member of the Armed Forces serving in a combat zone from gross income and wages subject to withholding; forgiving the income tax liability of a member of the Armed Forces who dies in a combat zone; certain estate tax rules applicable to a member of the Armed Forces who dies in a combat zone or as a result of an injury, wound, or disease suffered while in a combat zone; the exemption from the federal excise tax imposed on certain telephone services for telephone calls originating from a combat zone by a member of the Armed Forces; and postponing certain federal tax deadlines (e.g., filing a tax return, paying taxes, and claiming a tax refund) for a member of the Armed Forces serving in a combat zone. The bill defines a qualified hazardous duty area as Kenya, Mali, Burkina Faso, and Chad if any member of the U.S. Armed Forces is entitled to special pay (e.g., hostile fire pay and imminent danger pay) for services performed in such locations.
This bill amends the tax code to change how small business owners calculate a deduction for pass-through business income. It caps the deduction at $25,000 annually for eligible small businesses (defined as those with qualified business income under $25,000), while raising the income threshold for phaseout to $200,000 ($400,000 for joint filers). The changes simplify rules around loss carryovers and wage calculations for this deduction. The bill takes effect for tax years beginning after December 31, 2025.
The Nurse Corps Tax Parity Act of 2025 ensures that payments to nurses in the Public Health Service Nurse Corps under section 846 of the Public Health Service Act are treated as tax-exempt, aligning with existing tax treatment for similar payments under section 338B(g). This change means nurses receiving these specific payments - such as scholarships or loan repayment assistance - will not owe income tax on them. The bill amends two sections of the Internal Revenue Code to explicitly include section 846 in the tax-exempt provisions. These changes apply to payments received after the bill becomes law.
HR 2565, the No Tax on Bonuses Act of 2025, would exempt certain military enlistment, reenlistment, and retention bonuses from federal income tax. It directly affects members of the U.S. Armed Forces who receive these specific bonuses in exchange for service commitments, including officers and enlisted personnel in active or reserve components. The bill amends the Internal Revenue Code to exclude "qualified bonuses" from gross income, defining them as payments made by the military for enlistment, reenlistment, or extended service. This change applies to taxable years beginning after the bill's enactment.
The WRCR Act of 2025 expands the Earned Income Tax Credit (EITC) to include qualifying students who meet specific criteria, such as receiving a Federal Pell Grant or having household income below 300% of the poverty line. It lowers the age requirement for eligibility from 25 to 18 and creates a special rule treating certain care-giving and learning activities as "compensated work" for EITC purposes. The bill increases credit percentages for certain taxpayers, modifies phaseout amounts to $4,000 (single filers) and $30,000 (joint filers), and establishes an advance payment system allowing monthly EITC payments up to 75% of the estimated credit. These changes directly affect low-income workers, students, and families with children who qualify for the EITC, with the advance payments beginning in 2026 for taxable years after 2024.
This bill increases the income limit for deducting mortgage insurance premiums on federal income taxes. It doubles the cap from $100,000 (or $50,000 for married filing separately) to $200,000 (or $100,000 for married filing separately) under IRS Code Section 163(h)(3)(E), making the deduction permanent for qualifying taxpayers. The change directly affects middle-income homeowners who pay mortgage insurance premiums and itemize deductions on their tax returns. The policy takes effect for tax years beginning after December 31, 2025.
HR 2621, the REAL AMERICA Act, creates two new tax deductions: one for cash tips reported to employers (with an income limit of $450,000 for individuals or $900,000 for joint returns) and another for qualified overtime compensation paid under the Fair Labor Standards Act. It also changes tax treatment for partners providing investment management services to partnerships, requiring certain gains to be treated as ordinary income rather than capital gains. The bill repeals the requirement to include Social Security benefits in gross income while providing funding to maintain Social Security trust fund balances. These changes would primarily affect taxpayers who earn cash tips, receive overtime pay, or work in investment management roles within partnerships.
The American Family Act (HR 2763) establishes a new refundable child tax credit that provides monthly payments to eligible families with children. It would pay $300 per month for each child under age 6 and $360 per month (120% of $300) for each child age 6 or older, with income limits of $150,000 for joint filers and $112,500 for other filers. The bill creates a "period of presumptive eligibility" to determine eligibility for monthly payments, allowing families to receive advance payments based on information from previous tax returns. This would directly affect millions of families with children who meet the income requirements, providing more consistent financial support throughout the year rather than an annual tax credit.
