Us Congress House Bill HB560

Us Congress 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25

Caption

Second Job Tax Relief Act of 2025

Impact

By amending tax law to exclude secondary employment compensation, HB 560 is projected to enhance disposable income for many taxpayers, enabling them to retain more earnings from extra work. This measure could significantly impact lower and middle-income earners who rely on multiple jobs to sustain their families. Moreover, the bill includes a phase-out provision that gradually reduces the exclusion for taxpayers with Modified Adjusted Gross Income exceeding $100,000, ensuring that higher earners do not disproportionately benefit from this relief.

Summary

House Bill 560, known as the 'Second Job Tax Relief Act of 2025', proposes amendments to the Internal Revenue Code of 1986 that aim to provide tax relief for individuals engaged in secondary employment. The bill introduces a provision that excludes wages earned from secondary employment from gross income calculations for certain qualifying taxpayers, thereby exempting them from both income tax and payroll taxes. This legislative initiative is designed to support individuals who take on additional jobs, addressing the financial burdens often faced by working families seeking to increase their income.

Conclusion

Overall, HB 560 represents an effort to modernize tax policy in response to the increasing prevalence of multiple job holdings among Americans. By mitigating the tax burden on supplemental income, the bill seeks to assist those balancening various employment opportunities, potentially fostering greater economic stability for households navigating the challenges of today's labor market. As the bill progresses through the legislative process, key stakeholders will likely continue to deliberate on its fiscal impacts and its alignment with broader tax fairness goals.

Contention

Notably, discussions surrounding HB 560 may center on potential revenue implications for federal tax collections, specifically concerning the Social Security and Medicare Trust Funds. The bill stipulates that equivalent funding must be appropriated to these funds to compensate for the anticipated revenue reductions resulting from the exclusion of secondary employment compensation. Critics may argue that while the bill aims to relieve financial pressure on working families, it could place additional strain on existing social welfare programs due to diminished funding.

Congress_id

119-HR-560

Policy_area

Taxation

Introduced_date

2025-01-20