YourVoice.Now Summary
Your MoneyWorkers & JobsHigh-Earner BenefitsCorporate BenefitsTargeted & Unrelated ProvisionsMakes the 2017 tax rules permanent — same rates, bigger standard deduction, $2,000 child credit, $10,000 state-tax cap.
Your Money
The 2017 law nearly doubled this deduction, and the increase was set to end after 2025. The bill sets the base at $12,000 for single filers and twice that for couples, raised for inflation each year.
The $2,000 credit, plus $500 for other dependents, was due to shrink after 2025. The bill keeps both, along with the $400,000 and $200,000 income levels where the credit starts to phase down.
Loans wiped out because the borrower died or became permanently disabled stay tax-free with no end date. The rule covers private education loans as well as federal ones.
People with disabilities who work can add their own earnings to an ABLE account, above the usual yearly limit. That allowance and the savings credit for those deposits were both set to end after 2025.
Since 2018 you can deduct at most $10,000 of state and local income, sales and property taxes. That cap was set to disappear after 2025, and the bill keeps it with no end date.
Interest counts on up to $750,000 of debt used to buy or improve a home. Loans taken out on or before December 15, 2017 keep a $1 million limit, and home equity loan interest stays out.
Personal losses from fire, storm or theft can be written off only when a federal disaster is declared. The bill makes that limit permanent, so an uninsured house fire alone would not qualify.
Current law treats most forgiven student loans as tax-free through 2025. The bill moves that cutoff back a year, to discharges after December 31, 2024, so 2025 forgiveness would count as income.
A child must have a Social Security number valid for work before the family can claim the $2,000 credit. That requirement was due to expire after 2025, and the bill makes it permanent.
Workers & Jobs
Union dues, work tools, job travel your employer does not repay and tax prep fees were deductible before 2018. The bill bars them for good, so the cost stays with you.
An employer can repay moving costs tax-free only for active-duty members moving under military orders. For everyone else the payment counts as taxable wages, permanently.
High-Earner Benefits
The 37% top rate applies to couples' income above $600,000, a level that rises with inflation. It would no longer expire after 2025, when a higher top rate was set to return.
Estates pass tax-free up to a $10 million base per person, doubled from $5 million and raised for inflation since. Without the bill that base returns to $5 million after 2025.
The alternative minimum tax is a second tax calculation that can raise what you owe. The bill keeps the larger exemption, $109,400 for couples, and the $1 million income level where it starts to fade.
Business losses above a yearly cap cannot wipe out wages or investment income for filers who are not corporations. The bill makes that limit permanent, and unused losses carry forward to later years.
Corporate Benefits
Owners of partnerships, S corporations and sole proprietorships can deduct 20% of their business income. The break narrows for high earners in fields such as law, medicine and consulting.
Targeted & Unrelated Provisions
This piece is new policy, not a renewal of the 2017 law, which covered only private and religious school tuition. A 529 account could also pay for curriculum, books, online materials, tutoring, exam fees and disability therapies, including for homeschooled children.
More about this bill
Most federal income tax rules you file under today would become permanent. Many were written to lapse after December 31, 2025. Rates would stay at 10% through 37%. The standard deduction would stay near double its old size. Its base is $12,000 for single filers and twice that for couples, and it rises with inflation each year. The child tax credit would stay at $2,000 per child. Another $500 would stay in place for other dependents. The credit still shrinks above $400,000 of income for couples, or $200,000 for everyone else. In trade, the per-person exemption that families once claimed stays repealed for good. The new rules would start with tax years that begin after the bill became law. Several limits from the 2017 law would become permanent too. Your write-off for state and local taxes stays capped at $10,000. Mortgage interest stays deductible on up to $750,000 of loan debt. Interest on home equity loans stays out. Work costs you pay yourself stay off your return, such as union dues, tools and unpaid travel. Losses from a fire or theft count only after a federal disaster declaration. Employer-paid moving costs stay taxable unless you serve on active duty. Business owners and heirs to large estates keep the biggest breaks. Owners of partnerships, S corporations and sole proprietorships keep a 20% deduction on business profits. The estate and gift tax exemption stays at a $10 million base per person. A higher shield from the alternative minimum tax stays as well. Two items go beyond the 2017 law. A 529 school savings account could pay for homeschool costs, tutoring, exam fees and therapy for students with disabilities. And the tax break for forgiven student loans would end a year early, after 2024. Only loans erased for death or permanent disability would stay tax-free.
Congressional Summary
TCJA Permanency Act This bill makes permanent multiple federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act. The bill makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%; increased standard deduction; personal exemption allowance repeal; exclusion from income of student loans discharged due to death or disability; qualified business income tax deduction (199A tax deduction); allowance of ABLE account contributions in excess of the annual gift tax exclusion amount; base estate and gift tax exclusion amount of $10 million (adjusted annually); and alternative minimum tax exemption and phaseout amounts for noncorporate taxpayers. The bill makes permanent the child tax credit amounts of $2,000 per child and $500 for dependents, the $200,000 phaseout threshold ($400,000 for joint filers), and the refundable portion of the tax credit. The bill expands the expenses eligible for tax-free withdrawals from qualified tuition plans (529 plans) to include additional expenses associated with homeschool and elementary and secondary schools (e.g., instructional materials, tutoring, test and enrollment fees, and educational therapies). The bill permanently eliminates certain miscellaneous itemized deductions and makes permanent the state and local tax deduction limit of $10,000 ($5,000 for married individuals filing separately), mortgage interest tax deduction limit of $750,000 ($375,000 for married individuals filing separately), limit on the deduction of cash charitable contributions to 60% of a taxpayer’s adjusted gross income, and certain limits on casualty loss tax deductions. The bill also permanently eliminates the exclusion from income for employer-reimbursed bicycle commuting expenses.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-01-03
- Date Added
- 2026-04-22
- Source
- Congress.gov →
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