Bill · H.R. 560· House(119-HR-560)
Second Job Tax Relief Act of 2025
- Introduced
- 1/20/2025
- Last activity
- 1/20/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Don Bacon
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Second Job Tax Relief Act of 2025 aims to amend the Internal Revenue Code of 1986. It proposes to exclude compensation from secondary employment from income tax and payroll taxes for certain taxpayers. To qualify, a taxpayer must designate a primary employer where they worked at least 2080 hours on an hourly basis. The exclusion of income is subject to a phase-out based on the taxpayer's modified adjusted gross income. This specific tax relief is set to expire five years after the act is enacted.
Yes· 3 of 6
Does this cut taxes for middle-income families?+6
The bill excludes compensation from a secondary job from income and payroll taxes for those under certain income thresholds.
Would households on low incomes be better off under this?+5
The tax exclusion provides relief to households earning below the $100,000/$150,000 phase-out thresholds.
Would middle-income households be better off under this?+5
The bill allows middle-income earners to keep more of their secondary job earnings by exempting them from income and payroll taxes.
The opposite
Does this reduce what the federal government spends?-3
The bill reduces federal revenue by excluding secondary employment compensation from taxation.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief on Secondary Income: For qualifying taxpayers, compensation earned from an employer other than their designated primary employer would not be included in gross income (Section 2(a)).
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Reduction in Payroll Taxes: The bill amends the code so that compensation excludable under this section is not subject to Social Security or Unemployment taxes (Section 2(b)(1) and 2(b)(2)).
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Protection of Trust Funds: To offset revenue reductions, the bill appropriates amounts from the general fund to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund (Section 2(b)(1)(B)).
Potential Negative Impacts for People
-
Income-Based Limitations: The amount of compensation that can be excluded from gross income is reduced as a taxpayer's modified adjusted gross income exceeds $100,000 for individuals or $150,000 for married couples filing jointly (Section 2(a)(b)).
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Temporary Relief: The tax exclusion is not permanent and will not apply to compensation earned in taxable years beginning after the date that is 5 years after the enactment of the section (Section 2(a)(d)).
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 Low Income Households+5Good For Middle Class Households+5Good For Seniors+2
- Economy And Finance
- Reduces Middle Class Taxes+6Increases Job Creation+2Reduces Government Spending-3
- Healthcare
- Increases Medicare Funding+3
- 1/20/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House