The bill H.R. 557, titled the "Working Class Bonus Tax Relief Act of 2025," aims to amend the Internal Revenue Code of 1986 by allowing individuals to deduct a portion of their bonuses from their taxable income. Specifically, it permits a deduction for bonuses up to 15% of the individual's...
Simple Explanation
H.R. 557, known as the "Working Class Bonus Tax Relief Act of 2025," wants to help people pay less tax on the bonuses they get from work by letting them take a special chunk of those bonuses off their taxes. But this rule will only apply until the end of 2029, and it is made to especially help those who earn less money, like people with smaller paychecks.