All-Americans Tax Relief Act of 2025
Sponsored By: Representative Cherfilus-McCormick
Introduced
Summary
Expands refundable credits and creates broad new deductions to cut taxes for many families and workers while raising the top long term capital gains rate to 25%.
Show full summary
- Families and children would get a fully refundable Child Tax Credit of $2,000 per child for up to three children and $500 for additional children. The credit requires valid Social Security numbers and can bar claimants for multiple years after fraud or reckless claims.
- Low-income workers would see a bigger Earned Income Tax Credit with higher credit rates based on number of qualifying children, rising to 45% for households with three or more children and new earned income and phaseout rules.
- Many households would gain new deductions they can claim without itemizing. The bill creates or expands deductions for rent, commuting, daycare, medical expenses, credit card interest, and a tutoring deduction capped at $2,500.
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 9 benefits, 1 costs, 0 mixed.
New tax break for renters
This bill would let you deduct rent paid on your main home. The deduction would shrink by 1% for every $500 your modified AGI is over $75,000, or for joint filers by 1% for every $1,000 over $150,000. Modified AGI adds certain excluded foreign income amounts. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026.
Tax break for tutoring costs
This bill would let you deduct up to $2,500 a year for qualified tutoring for your child. The child must attend a Title I‑eligible public school or a qualifying charter school. Tutoring must be in groups of up to 4 students and meet session length and frequency rules. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026, with rules issued by Treasury as needed.
Bigger child tax refunds for families
This bill would create a fully refundable child tax credit. You would get $2,000 for each of up to three children under 17 and $500 for each extra child. The credit would drop by $50 for each $1,000 (or part) your modified AGI is over $110,000 (joint), $75,000 (unmarried), or $55,000 (separate). You, your spouse (if joint), and each child would need Social Security numbers issued before the return due date. Fraud or reckless claims could bar you for 10 or 2 years. Amounts would be indexed for inflation after 2025 and would apply to tax years starting after December 31, 2026.
Bigger earned income credit for workers
This bill would raise Earned Income Tax Credit rates and update key dollar amounts. Credit rates would be 38% (1 child), 43% (2), 45% (3+), and 30% if no children (35% for joint filers). Earned income amounts would be $15,000 (1 child), $20,000 (2+), and $10,000 (no children joint) or $8,500 (others). The phaseout would start at $47,120 for joint filers and $40,000 for others. These changes would apply to tax years after December 31, 2026 and adjust for inflation after 2027.
Bigger tax break for medical bills
This bill would remove the income‑based floor for the medical expense deduction. You could deduct all qualifying medical expenses that meet section 213 rules. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026.
Deduction for credit card interest
This bill would let you deduct up to $2,500 of interest you paid on open‑end credit card plans. The terms would match the Truth in Lending Act definitions. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026.
Deduction for public transit commuting
This bill would let you deduct verified public‑transit commuting costs if you work at the same place at least 20 hours a week. The deduction would be allowed only if your modified AGI is at or below $250,000 (joint) or $125,000 (others). Treasury would set what counts and how to verify by January 1, 2027. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026.
Tax deduction for daycare tuition
This bill would let you deduct daycare tuition you pay for a dependent under age 7. The daycare must be a qualifying childcare institution under federal rules. Non‑itemizers could claim it. It would apply to tax years after December 31, 2026.
New priority for canceled debt taxes
This bill would change how canceled debt is taxed for individuals. It would give priority to the individual exclusion and block other listed exclusions when the individual rule applies. It would also remove two subsections of section 108 and a clause in section 163. The change would apply to debt incurred after December 31, 2026.
Higher top capital gains tax
This bill would raise the top capital gains tax rate from 20% to 25%. You would pay 5% more tax on gains taxed at that top rate. It would apply to tax years beginning December 31, 2026.
Sponsors & CoSponsors
Sponsor
Cherfilus-McCormick
FL • D
Cosponsors
McIver
NJ • D
Sponsored 4/17/2025
Johnson (GA)
GA • D
Sponsored 4/17/2025
Tlaib
MI • D
Sponsored 4/17/2025
Tokuda
HI • D
Sponsored 5/5/2025
Roll Call Votes
No roll call votes available for this bill.
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