Bill > HR1833

This bill proposes two key changes to the U.S. tax code for the years 2026 and 2027. First, it renames the "standard deduction" to the "guaranteed deduction" throughout the Internal Revenue Code, which is a largely technical change that does not alter the fundamental nature of the deduction. Second, and more substantively, the bill introduces a new "bonus guaranteed deduction" for those two tax years, providing additional tax relief based on filing status. Specifically, the bonus deduction would be $4,000 for joint filers and surviving spouses, $3,000 for head of household filers, and $2,000 for other filers. This bonus deduction would be subject to a phase-out for higher-income taxpayers, with the reduction beginning at income thresholds of $400,000 for joint filers, $300,000 for head of household filers, and $200,000 for other filers. The bonus amounts would also be adjusted annually for inflation, with any increases rounded down to the nearest $50. The changes would take effect for tax years beginning after December 31, 2025, providing a temporary boost to taxpayers' standard deductions during those two years.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1833/all-info