Bill > HR523

This bill seeks to permanently increase the standard deduction for federal income tax purposes by amending the Internal Revenue Code of 1986. Specifically, the bill raises the standard deduction amount for single filers from $4,400 to $18,000 and for married couples filing jointly from $3,000 to $12,000. The bill also establishes a new method for adjusting these deduction amounts annually for inflation, using the cost-of-living adjustment and calculating changes based on specific reference years. By making these changes permanent, the legislation aims to provide long-term tax relief for American families by reducing the amount of income subject to federal taxation. The amendments would apply to all taxable years beginning after the date the Act is enacted, meaning taxpayers would see the increased standard deduction in their future tax filings. This change could potentially lower tax burdens for many taxpayers and simplify the tax filing process by increasing the amount individuals can deduct before calculating their taxable income.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/523/all-info