The bill would let eligible taxpayers deduct bonus income from their federal taxable income. The deduction would be limited to the smaller of the bonus received or 15% of non-bonus wages from the same employer for that tax year. It would not be available to taxpayers whose adjusted gross income is above $200,000 for married couples filing jointly, $150,000 for heads of household, or $100,000 for other taxpayers. The deduction would apply to amounts received after enactment and end for amounts received after December 31, 2029.
If you meet the income limit, you could claim the deduction whether or not you itemize deductions. The bill would also direct the Treasury Secretary to update income tax withholding procedures to account for the deduction.
No publicly available information on the bill's fiscal cost.
No publicly available information.
No publicly available information.