Bill · H.R. 6872· House(119-HR-6872)
Holiday Bonus Tax Relief Act of 2025
- Introduced
- 12/18/2025
- Last activity
- 12/18/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Ryan Mackenzie
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Holiday Bonus Tax Relief Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to exclude qualified holiday bonuses from an individual's gross income. A qualified holiday bonus is defined as a holiday, end-of-year, or similar bonus paid by an employer during January, November, or December. The exclusion is limited to $2,500 per individual. This amount may be adjusted for inflation for taxable years beginning after 2026.
Yes· 3 of 9
Does this cut taxes for middle-income families?+5
The bill allows individuals to exclude up to $2,500 of holiday bonus income from their gross income.
Would households on low incomes be better off under this?+4
The $2,500 tax exclusion provides a meaningful increase in disposable income for lower-earning employees.
Would middle-income households be better off under this?+4
The $2,500 tax exclusion provides a meaningful increase in disposable income for middle-income employees.
The opposite
Does this reduce what the federal government spends?-2
Excluding bonus income from gross income reduces the total amount of federal income tax revenue collected.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Exclusion on Bonuses: Individuals will not have to include qualified holiday bonuses in their gross income, which provides financial relief (Section 2(a)).
-
Inflation Adjustments: The $2,500 exclusion limit will be increased for taxable years after 2026 based on cost-of-living adjustments, allowing the benefit to keep up with economic changes (Section 2(a)(b)(2)).
Potential Negative Impacts for People
-
Exclusion Limit: The amount that can be excluded from gross income is capped at $2,500 per individual (Section 2(a)(b)(1)).
-
Risk of Reclassification: The Secretary is tasked with creating regulations to prevent people from reclassifying other types of income as holiday bonuses to abuse the system (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+4Good For Middle Class Households+4Good For Business Owners+3Good For Middle Aged+3Good For Seniors+3Good For Young Adults+3Good For High Income Households+2
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+2Reduces Government Spending-2
- 12/18/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Jared MoskowitzDemocrat · Florida