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Tax Relief for Military: Bonuses Excluded from Income

This bill aims to exclude military bonuses from gross income for tax purposes. This means service members will receive more money from their bonuses as they will not be subject to income tax. These changes will apply to taxable years beginning after December 31, 2024.
Key points
Military bonuses, such as those paid under chapter 5 of title 37, United States Code, will not be included in taxable income.
Service members will receive the full amount of their bonuses, without income tax deductions, increasing their net income.
The new rules will take effect from January 1, 2025, impacting tax filings for that year and subsequent years.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1856
Sponsor: Sen. Blumenthal, Richard [D-CT]
Process start date: 2025-05-22