Bill > HR2621

This bill, titled the "REAL AMERICA Act," proposes several significant changes to the Internal Revenue Code of 1986, focusing on tax deductions and income reporting. The bill establishes new tax deductions for cash tips and qualified overtime compensation, specifically allowing workers to deduct the full amount of cash tips received during the taxable year, subject to income limitations of $450,000 for individual filers and $900,000 for joint returns. Similarly, the bill creates a deduction for qualified overtime compensation, which is defined as overtime pay that exceeds an employee's regular rate as specified in the Fair Labor Standards Act. The bill also repeals the inclusion of Social Security benefits in gross income for tax years beginning after December 31, 2025, and includes provisions that modify how partnership interests transferred in connection with services are treated for tax purposes. Additionally, the bill introduces new rules for partners providing investment management services to partnerships, changing how income and gains from such services are taxed, with a focus on treating certain partnership interests and related income as ordinary income rather than capital gains. The changes are generally set to take effect for taxable years beginning after December 31, 2025, with some provisions effective immediately upon the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2621/all-info