Bill · H.R. 3769· House(119-HR-3769)
Dependent Income Exclusion Act of 2025
- Introduced
- 6/5/2025
- Last activity
- 6/5/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Steven Horsford
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Dependent Income Exclusion Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to exclude certain types of income earned by dependents when calculating modified adjusted gross income for premium tax credits. This exclusion applies to wages or self-employment earnings of dependents under age 18, or those under age 24 participating in specific job-training or apprenticeship programs. There are limitations on how much aggregate dependent income can be excluded based on the taxpayer's income. Additionally, specific rules apply to taxpayers living in states that have not expanded Medicaid.
Yes· 3 of 8
Would children be better off under this?+5
The bill benefits children by allowing their earnings to be excluded from household income for tax credit purposes.
Would people in their twenties and thirties be better off under this?+5
Young adults in training or apprenticeships receive tax-related benefits through income exclusion.
Would households on low incomes be better off under this?+5
The bill assists low-income families by preventing dependent income from disqualifying them from health subsidies.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Exclusion of Dependent Earnings: The bill would prevent the wages or net earnings from self-employment of certain dependents from being counted toward a taxpayer's modified adjusted gross income (Section 2(a)(i)). This could help maintain eligibility for premium tax credits.
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Support for Young Adults in Training: Dependents under age 24 who are participating in a qualified job-training program or a registered apprenticeship program can have their income excluded (Section 2(a)(i)(II)). This applies to those participating in training services described in the Workforce Innovation and Opportunity Act.
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Protection for Low-Income Households in Non-Expansion States: For taxpayers in states that do not provide Medicaid expansion, the exclusion applies as long as it does not reduce the household income below 100 percent of the poverty line for the family size (Section 2(a)(i)(iv)).
Potential Negative Impacts for People
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Income Threshold Limits: The exclusion of dependent income is limited and does not apply to the portion of aggregate dependent income that exceeds 15 percent of the taxpayer's modified adjusted gross income (Section 2(a)(i)(iii)).
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Restrictions in Non-Expansion States: In states that have not expanded Medicaid, the ability to exclude dependent income is limited to ensure the household income does not fall below 100 percent of the poverty line (Section 2(a)(i)(iv)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Children+5Good For Low Income Households+5Good For Young Adults+5Good For Students+4Good For Middle Class Households+2
- Healthcare
- Increases Affordable Care Act Support+5Improves Healthcare Access+4
- Social Issues And Justice
- Improves Poverty Reduction+3
- 6/5/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Gwen MooreDemocrat · Wisconsin