I
119THCONGRESS
1
STSESSION H. R. 1833
To amend the Internal Revenue Code of 1986 to rename the standard deduc-
tion the guaranteed deduction, and to add a bonus amount to the
guaranteed deduction for taxable years 2026 and 2027.
IN THE HOUSE OF REPRESENTATIVES
MARCH4, 2025
Ms. M
ALLIOTAKISintroduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to rename
the standard deduction the guaranteed deduction, and
to add a bonus amount to the guaranteed deduction
for taxable years 2026 and 2027.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Working Families Tax 4
Cut Act’’. 5
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SEC. 2. STANDARD DEDUCTION RENAMED GUARANTEED 1
DEDUCTION. 2
(a) I
NGENERAL.—Section 63 of the Internal Rev-3
enue Code of 1986 is amended— 4
(1) by striking ‘‘standard deduction’’ each place 5
it appears and inserting ‘‘guaranteed deduction’’, 6
and 7
(2) in subsection (c)— 8
(A) in the heading, by striking ‘‘S
TAND-9
ARDDEDUCTION’’ and inserting ‘‘GUARANTEED 10
D
EDUCTION’’, 11
(B) in the heading of paragraph (2), by 12
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 13
‘‘
GUARANTEED DEDUCTION ’’, 14
(C) in the heading of paragraph (3), by 15
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 16
‘‘
GUARANTEED DEDUCTION ’’, 17
(D) in the heading of paragraph (5), by 18
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 19
‘‘
GUARANTEED DEDUCTION ’’, 20
(E) in the heading of paragraph (6), by 21
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 22
‘‘
GUARANTEED DEDUCTION ’’, and 23
(F) in the heading of paragraph (7)(A), by 24
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 25
‘‘
GUARANTEED DEDUCTION ’’. 26
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(b) CONFORMINGAMENDMENTS.— 1
(1) Section 1(g)(4)(A) of such Code is amended 2
by striking ‘‘standard deduction’’ and inserting 3
‘‘guaranteed deduction’’. 4
(2) Section 56(b)(1)(D) of such Code is amend-5
ed— 6
(A) in the heading, by striking ‘‘S
TAND-7
ARD DEDUCTION’’ and inserting ‘‘GUARANTEED 8
DEDUCTION’’, and 9
(B) by striking ‘‘standard deduction’’ and 10
inserting ‘‘guaranteed deduction’’. 11
(3) Section 861(b) of such Code is amended by 12
striking ‘‘standard deduction’’ and inserting ‘‘guar-13
anteed deduction’’. 14
(4) Section 862(b) of such Code is amended by 15
striking ‘‘standard deduction’’ and inserting ‘‘guar-16
anteed deduction’’. 17
(5) Section 1398(c) of such Code is amended— 18
(A) in the heading, by striking ‘‘S
TAND-19
ARDDEDUCTION’’ and inserting ‘‘GUARANTEED 20
D
EDUCTION’’, 21
(B) in the heading of paragraph (3), by 22
striking ‘‘
STANDARD DEDUCTION ’’ and inserting 23
‘‘
GUARANTEED DEDUCTION ’’, and 24
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(C) by striking ‘‘standard deduction’’ and 1
inserting ‘‘guaranteed deduction’’. 2
(6) Section 3402 of such Code is amended by 3
striking ‘‘standard deduction’’ each place it appears 4
and inserting ‘‘guaranteed deduction’’. 5
(7) Section 6012 of such Code is amended by 6
striking ‘‘standard deduction’’ each place it appears 7
and inserting ‘‘guaranteed deduction’’. 8
(8) Section 6013(b)(3)(A) of such Code is 9
amended by striking ‘‘standard deduction’’ and in-10
serting ‘‘guaranteed deduction’’. 11
(9) Section 6014(b)(4) of such Code is amend-12
ed by striking ‘‘standard deduction’’ and inserting 13
‘‘guaranteed deduction’’. 14
(10) Section 6334 of such Code is amended by 15
striking ‘‘standard deduction’’ each place it appears 16
and inserting ‘‘guaranteed deduction’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to taxable years beginning after 19
December 31, 2025. 20
SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2026 AND 21
2027. 22
(a) I
NGENERAL.—Section 63(c) of the Internal Rev-23
enue Code of 1986 (as amended by section 2) is amended 24
by adding at the end the following new paragraph: 25
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‘‘(8) BONUS GUARANTEED DEDUCTION FOR 1
TAXABLE YEARS 2026 AND 2027.— 2
‘‘(A) I
N GENERAL.—In the case of a tax-3
able year beginning after December 31, 2025, 4
and before January 1, 2028, the guaranteed de-5
duction shall be increased by the amount of the 6
bonus guaranteed deduction. 7
‘‘(B) B
ONUS GUARANTEED DEDUCTION .— 8
For purposes of this paragraph, the bonus 9
guaranteed deduction is— 10
‘‘(i) $4,000 in the case of a joint re-11
turn or a surviving spouse (as defined in 12
section 2(a)), 13
‘‘(ii) $3,000 in the case of a head of 14
household, and 15
‘‘(iii) $2,000 in any other case. 16
‘‘(C) A
DJUSTMENT FOR INFLATION .—In 17
the case of a taxable year beginning after 2026, 18
each dollar amount in subparagraph (B) shall 19
be increased by an amount equal to— 20
‘‘(i) such dollar amount, multiplied by 21
‘‘(ii) the cost-of-living adjustment de-22
termined under section 1(f)(3) for the cal-23
endar year in which the taxable year be-24
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gins, determined by substituting ‘2025’ for 1
‘2016’ in subparagraph (A)(ii) thereof. 2
If any increase under this subparagraph is not 3
a multiple of $50, such increase shall be round-4
ed to the next lowest multiple of $50. 5
‘‘(D) L
IMITATION ON BONUS GUARANTEED 6
DEDUCTION BASED ON MODIFIED ADJUSTED 7
GROSS INCOME.— 8
‘‘(i) I
N GENERAL.—The bonus guar-9
anteed deduction determined under sub-10
paragraph (B) shall be reduced (but not 11
below zero) by 5 percent of so much of the 12
taxpayer’s modified adjusted gross income 13
as exceeds the threshold amount. For pur-14
poses of the preceding sentence, the term 15
‘modified adjusted gross income’ means 16
adjusted gross income increased by any 17
amount excluded from gross income under 18
section 911, 931, or 933. 19
‘‘(ii) T
HRESHOLD AMOUNT .—For pur-20
poses of clause (i), the threshold amount 21
is— 22
‘‘(I) $400,000 in the case of a 23
joint return or a surviving spouse (as 24
defined in section 2(a)), 25
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‘‘(II) $300,000 in the case of a 1
head of household, and 2
‘‘(III) $200,000 in any other 3
case.’’. 4
(b) E
FFECTIVEDATE.—The amendments made by 5
this subsection shall apply to taxable years beginning after 6
December 31, 2025. 7
Æ
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