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To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts received as a bonus.
1/21/2025, 9:20 AM
Summary of Bill HR 557
Bill 119 HR 557, also known as the Bonus Deduction Act, aims to amend the Internal Revenue Code of 1986 to create a new deduction for certain bonuses received by individuals. The bill proposes that individuals who receive bonuses from their employers would be able to deduct a portion of that bonus from their taxable income.
The deduction would apply to bonuses that meet certain criteria, such as being a one-time payment and not exceeding a certain amount. This deduction would provide individuals with some relief from the tax burden associated with receiving bonuses, potentially incentivizing employers to provide bonuses to their employees.
Supporters of the bill argue that it would help stimulate the economy by putting more money into the hands of consumers. However, critics raise concerns about the potential impact on government revenue and the fairness of providing tax breaks for bonuses. Overall, the Bonus Deduction Act is a proposal to provide tax relief for individuals who receive bonuses, with the goal of boosting consumer spending and economic growth. The bill is currently under consideration in the US Congress.
The deduction would apply to bonuses that meet certain criteria, such as being a one-time payment and not exceeding a certain amount. This deduction would provide individuals with some relief from the tax burden associated with receiving bonuses, potentially incentivizing employers to provide bonuses to their employees.
Supporters of the bill argue that it would help stimulate the economy by putting more money into the hands of consumers. However, critics raise concerns about the potential impact on government revenue and the fairness of providing tax breaks for bonuses. Overall, the Bonus Deduction Act is a proposal to provide tax relief for individuals who receive bonuses, with the goal of boosting consumer spending and economic growth. The bill is currently under consideration in the US Congress.
Congressional Summary of HR 557
Working Class Bonus Tax Relief Act of 2025
This 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 income exceeding $100,000 (or $150,000 for heads of the household and $200,000 for married couples filing a joint return).
Current Status of Bill HR 557
Bill HR 557 is currently in the status of Bill Introduced since January 20, 2025. Bill HR 557 was introduced during Congress 119 and was introduced to the House on January 20, 2025. Bill HR 557's most recent activity was Referred to the House Committee on Ways and Means. as of January 20, 2025
Bipartisan Support of Bill HR 557
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 557
Primary Policy Focus
Alternate Title(s) of Bill HR 557
To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts received as a bonus.
To amend the Internal Revenue Code of 1986 to establish a deduction for certain amounts received as a bonus.
Comments
Sponsors and Cosponsors of HR 557
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