Bill > HR6872

This bill, titled the Holiday Bonus Tax Relief Act of 2025, amends the Internal Revenue Code of 1986 to exclude certain holiday bonuses from an individual's gross income, meaning these bonuses will not be taxed. Specifically, it creates a new section that defines a "qualified holiday bonus" as any bonus paid by an employer to an employee during November, December, or January that is related to holidays, the end of the year, or similar occasions. There is a limit to how much can be excluded, which is $2,500 per individual, and this amount will be adjusted for inflation annually starting in 2026. The bill also requires that these qualified holiday bonuses be reported on an employee's W-2 form, which is a tax form detailing wages earned and taxes withheld, and the changes are effective for bonuses received on or after November 1, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6872/all-info