All-Americans Tax Relief Act of 2025

Expanded Earned Income Tax Credit: The bill increases the maximum credit amounts and decreases phaseout percentages for eligible individuals (Section 2).

Refundable Child Tax Credit: The child tax credit is made fully refundable, providing $2,000 for each of up to three qualifying children and $500 for others (Section 3).

Expanded Medical Deduction: The threshold for medical expenses is removed, and the deduction is allowed for non-itemizers (Section 4).

Daycare Expense Deduction: Individuals can deduct qualified daycare expenses for dependents under the age of 7 (Section 5).

Commuting Expense Deduction: Eligible individuals can deduct expenses paid to use public transit for work travel (Section 6).

Tutoring Expenses Deduction: A deduction of up to $2,500 is allowed for specific tutoring services for dependents in certain schools (Section 7).

Credit Card Interest Deduction: Individuals can deduct interest paid on open-end credit plans up to $2,500 (Section 8).

Rent Deduction: Individuals can deduct qualifying rent payments for their primary residence, subject to certain income thresholds (Section 9).

Debt Discharge Exclusion: The bill amends the exclusion of the discharge of indebtedness to apply to individuals (Section 10).

Child Tax Credit Income Reductions: The credit amount is reduced based on the taxpayer's modified adjusted gross income once it exceeds specific threshold amounts (Section 3).

Rent Deduction Income Phaseout: The rent deduction is reduced by 1 percent for every $500 (or $1,000 for joint returns) that an individual's income exceeds specific thresholds (Section 9).

Increased Capital Gains Rate: The tax rate on capital gains is increased from 20 percent to 25 percent (Section 11).