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Tax Relief for Workers: Deduction for Bonuses up to 15% of Wages.

This Act establishes a new tax deduction allowing employees to subtract a portion of their received bonuses from their taxable income. This aims to increase the take-home value of bonuses for low and middle-income workers. The deduction is capped at 15% of the individual's non-bonus wages and is subject to specific income limits based on filing status.
Key points
New Tax Deduction: You can deduct a portion of any bonus received from your employer from your taxable income.
Deduction Limit: The maximum deductible amount is 15% of your annual non-bonus wages from the same employer.
Income Restrictions: The benefit is only available if your adjusted gross income does not exceed $200,000 (married filing jointly), $150,000 (head of household), or $100,000 (other individuals).
Accessibility: The deduction is available regardless of whether you take the standard deduction or itemize your deductions.
Expiration Date: This deduction is set to expire for amounts received after December 31, 2029.
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Additional Information
Print number: 118_HR_9800
Sponsor: Rep. Bacon, Don [R-NE-2]
Process start date: 2024-09-25
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Working Class Bonus Tax Relief Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9800.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-09-25.

What are the main provisions?

Key points include:

  • New Tax Deduction: You can deduct a portion of any bonus received from your employer from your taxable income.
  • Deduction Limit: The maximum deductible amount is 15% of your annual non-bonus wages from the same employer.
  • Income Restrictions: The benefit is only available if your adjusted gross income does not exceed $200,000 (married filing jointly), $150,000 (head of household), or $100,000 (other individuals).
  • Accessibility: The deduction is available regardless of whether you take the standard deduction or itemize your deductions.
  • Expiration Date: This deduction is set to expire for amounts received after December 31, 2029.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Bacon, Don [R-NE-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Labor Economy