Bill > HR2655

This bill proposes to modify the Internal Revenue Code of 1986 by eliminating federal income tax on unemployment compensation for taxable years beginning after December 31, 2024. Specifically, the bill would amend Section 85 of the tax code by removing the existing language that requires unemployment benefits to be included in an individual's gross income and replacing it with a provision that effectively sunsets (terminates) the taxation of unemployment compensation after the 2024 tax year. This means that starting in 2025, unemployed individuals would no longer have to pay federal income tax on the unemployment benefits they receive. The bill aims to provide financial relief to people who are temporarily out of work by allowing them to keep more of their unemployment assistance without having to pay federal taxes on those benefits.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2655/all-info