This bill gives working people a tax break on bonuses they receive from their employers, but only if they earn below certain income thresholds. If you make less than $100,000 a year (or $150,000 if you're a head of household, or $200,000 if you're married filing jointly), you can deduct up to 15% of any bonus you get from your employer when you file your taxes. For example, if you earned a $10,000 bonus, you could deduct up to $1,500 from your taxable income. This benefit is temporary and only available through 2029. The catch is that the deduction is capped at 15% of your regular wages from that same employer—so if you make $50,000 in regular wages, your maximum deduction would be $7,500 even if you received a larger bonus. Once your income exceeds the limits for your filing status, you lose this deduction entirely, meaning higher earners don't get this tax relief.

Working Class Bonus Tax Relief Act of 2025

Bacon, Don

Working Class Bonus Tax Relief Act of 2025This bill allows a tax deduction for bonuses received by an individual, subject to income limitations, through 2029. The amount of the deduction may not exceed 15% of the individual’s regular wages from the same employer. Further, the deduction is not allowed for individuals with annual adjusted gross&nbsp;income exceeding $100,000 (or $150,000 for heads of the household and $200,000 for married couples filing a joint return).&nbsp;&nbsp;