The All-Americans Tax Relief Act of 2025 would change several federal tax credits and deductions. It would increase the earned income tax credit and create a child tax credit of up to $2,000 for each of a taxpayer’s first three qualifying children and $500 for each additional qualifying child, with income limits and other eligibility rules. It would also allow deductions for medical expenses, daycare for a dependent under age 7, qualifying public transit commuting costs, certain tutoring costs up to $2,500, credit card interest up to $2,500, and rent paid for a primary residence. Most of these changes would apply to tax years beginning after 2026. The bill would also change how canceled debt is treated for individuals and raise the top capital gains rate from 20% to 25% for tax years beginning December 31, 2026.
If enacted, the changes could affect your federal taxes if you qualify for the credits or deductions. Eligibility rules, income limits, and expense definitions vary. The bill has been referred to the House Committee on Ways and Means and is still in progress; it is not enacted.
No publicly available information on the bill’s total fiscal cost is provided in the bill text or metadata.
No publicly available information.
No publicly available information.