Holiday Bonus Tax Relief Act of 2025

This bill would change federal tax law so that holiday, end-of-year, or similar bonuses paid by an employer to an employee in January, November, or December are not counted as taxable income. The amount each person could exclude would be capped at $2,500, with the cap adjusted for inflation for tax years beginning after 2026. Employers would have to report the total of these bonuses on employees' W-2 forms. The Treasury Secretary would issue rules to keep other income from being relabeled as holiday bonuses, and the change would apply to bonuses received on or after November 1, 2025.

Full text and official record on Congress.gov

Sponsors

• Ryan Mackenzie Republican sponsor
• 1 cosponsors