Us Congress 2025-2026 Regular Session

Us Congress House Bill HB560 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 560
5	5	To amend the Internal Revenue Code of 1986 to exclude compensation from
6	6	secondary employment for certain taxpayers from the income tax and
7	7	payroll taxes.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	JANUARY20, 2025
10	10	Mr. B
11	11	ACONintroduced the following bill; which was referred to the Committee
12	12	on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to exclude
15	15	compensation from secondary employment for certain
16	16	taxpayers from the income tax and payroll taxes.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Second Job Tax Relief 4
21	21	Act of 2025’’. 5
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24	24	•HR 560 IH
25	25	SEC. 2. EXCLUSION OF COMPENSATION FOR CERTAIN SEC-1
26	26	ONDARY EMPLOYMENT FROM INCOME AND 2
27	27	PAYROLL TAX. 3
28	28	(a) I
29	29	NGENERAL.—Part III of subchapter B of chap-4
30	30	ter 1 of the Internal Revenue Code of 1986 is amended 5
31	31	by inserting after section 139I the following new section: 6
32	32	‘‘SEC. 139J. EARNED INCOME FROM ADDITIONAL EMPLOY-7
33	33	MENT. 8
34	34	‘‘(a) I
35	35	NGENERAL.—In the case of a qualifying tax-9
36	36	payer, gross income shall not include secondary employ-10
37	37	ment compensation. 11
38	38	‘‘(b) P
39	39	HASE-OUT.—The amount of compensation ex-12
40	40	cluded from gross income under subsection (a) (deter-13
41	41	mined without regard to this subsection) shall be reduced 14
42	42	(but not below zero) by the amount which bears the same 15
43	43	ratio to the amount which is so excludable as— 16
44	44	‘‘(1) the excess (if any) of— 17
45	45	‘‘(A) the taxpayer’s modified adjusted 18
46	46	gross income (as defined in section 19
47	47	36(b)(2)(B)) for such taxable year, over 20
48	48	‘‘(B) $100,000 ($150,000 in the case of a 21
49	49	married couple filing jointly), bears to 22
50	50	‘‘(2) $50,000. 23
51	51	‘‘(c) S
52	52	ECONDARYEMPLOYMENTCOMPENSATION.— 24
53	53	‘‘(1) I
54	54	N GENERAL.—For purposes of this sec-25
55	55	tion, the term ‘secondary employment compensation’ 26
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58	58	•HR 560 IH
59	59	means compensation received for employment during 1
60	60	a taxable year with respect to which an individual 2
61	61	has made an election under paragraph (2) for an 3
62	62	employer other than the primary employer of such 4
63	63	individual. 5
64	64	‘‘(2) P
65	65	RIMARY EMPLOYER.— 6
66	66	‘‘(A) E
67	67	LECTION.—A taxpayer may elect to 7
68	68	designate, with respect to a taxable year, a pri-8
69	69	mary employer if such individual was com-9
70	70	pensated on an hourly basis for not less than 10
71	71	2080 hours of work by such employer. 11
72	72	‘‘(B) D
73	73	EFINITION.—For purposes of this 12
74	74	section, the term ‘primary employer’ means, 13
75	75	with respect to a taxable year, an employer des-14
76	76	ignated by the taxpayer under subparagraph 15
77	77	(A). 16
78	78	‘‘(d) S
79	79	UNSET.—Subsection (a) shall not apply to 17
80	80	compensation earned in taxable years beginning after the 18
81	81	date is that is 5 years after the date of the enactment 19
82	82	of this section.’’. 20
83	83	(b) A
84	84	PPLICATION TOEMPLOYMENTTAXES.— 21
85	85	(1) S
86	86	OCIAL SECURITY TAXES.— 22
87	87	(A) I
88	88	N GENERAL.—Section 3121(a) of 23
89	89	such Code is amended by striking ‘‘or’’ at the 24
90	90	end of paragraph (22), by striking the period at 25
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93	93	•HR 560 IH
94	94	the end of paragraph (23) and inserting ‘‘; or’’, 1
95	95	and by inserting after paragraph (23) the fol-2
96	96	lowing new paragraph: 3
97	97	‘‘(24) any amount of compensation which is ex-4
98	98	cludable from gross income under section 139J.’’. 5
99	99	(B) T
100	100	RUST FUNDS HELD HARMLESS .— 6
101	101	There are hereby appropriated to the Federal 7
102	102	Old-Age and Survivors Insurance Trust Fund, 8
103	103	the Federal Disability Insurance Trust Fund, 9
104	104	and the Federal Hospital Insurance Trust 10
105	105	Fund amounts equivalent to the reduction in 11
106	106	revenues to each such Trust Fund, respectively, 12
107	107	by reason of the amendment made by subpara-13
108	108	graph (A) (determined without regard to this 14
109	109	subparagraph). Amounts appropriated by the 15
110	110	preceding sentence shall be transferred from the 16
111	111	general fund at such times and in such manner 17
112	112	as to replicate to the extent possible the trans-18
113	113	fers which would have occurred to such Trust 19
114	114	Fund had this section not been enacted. 20
115	115	(2) U
116	116	NEMPLOYMENT TAXES .—Section 3306(b) 21
117	117	of such Code is amended by striking ‘‘or’’ at the end 22
118	118	of paragraph (19), by striking the period at the end 23
119	119	of paragraph (20) and inserting ‘‘; or’’, and by in-24
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122	122	•HR 560 IH
123	123	serting after paragraph (20) the following new para-1
124	124	graph: 2
125	125	‘‘(21) any amount of compensation which is ex-3
126	126	cludable from gross income under section 139J.’’. 4
127	127	(3) W
128	128	AGE WITHHOLDING .—Section 3401(a) of 5
129	129	such Code is amended by striking ‘‘or’’ at the end 6
130	130	of paragraph (22), by striking the period at the end 7
131	131	of paragraph (23) and inserting ‘‘; or’’, and by in-8
132	132	serting after paragraph (23) the following new para-9
133	133	graph: 10
134	134	‘‘(24) any amount of compensation which is ex-11
135	135	cludable from gross income under section 139J.’’. 12
136	136	(c) C
137	137	LERICALAMENDMENT.—The table of sections 13
138	138	for part III of subchapter B of chapter 1 of such Code 14
139	139	is amended by inserting after the item relating to section 15
140	140	139I the following new item: 16
141	141	‘‘Sec. 139J. Earned income from additional employment.’’.
142	142	(d) EFFECTIVEDATE.—The amendments made by 17
143	143	this section shall apply to amounts received after the date 18
144	144	of the enactment of this Act. 19
145	145	Æ
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