Bill > S1856

This bill modifies the Internal Revenue Code of 1986 to exclude military bonuses from gross income for tax purposes. Specifically, the bill amends section 134 of the tax code to explicitly state that any bonus paid to a member of the uniformed services under chapter 5 of title 37 of the United States Code will be exempt from income taxation. This means that military personnel who receive bonuses for recruitment, retention, or other service-related incentives will not have to pay federal income tax on those bonus amounts. The amendment will take effect for taxable years beginning after December 31, 2024, which gives taxpayers and the Internal Revenue Service time to prepare for the change. By excluding these bonuses from gross income, the bill aims to provide additional financial support and recognition for members of the U.S. military who receive special compensation for their service.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1856/all-info