Second Job Tax Relief Act of 2025
Sponsored By: Representative Bacon
Introduced
Summary
Creates a temporary tax exclusion for pay from a second job for qualifying workers. It would also align payroll-tax rules and require transfers to protect Social Security and Medicare trust funds.
Show full summary
- Workers with a second job: A taxpayer could exclude compensation from secondary employment if they elect a primary employer who paid them hourly for at least 2,080 hours. The exclusion applies only to pay received after enactment and ends after five years.
- Income limits: The exclusion phases out based on modified adjusted gross income with thresholds of $100,000 for single filers and $150,000 for married filing jointly.
- Payroll and trust funds: The bill treats excluded amounts as wages for Social Security tax purposes and provides appropriations to hold trust funds harmless. It also updates unemployment tax and wage withholding rules to reflect the exclusion.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax break on second-job pay for workers
If enacted, you could exclude pay from second jobs from your taxable income. To qualify, you would pick one primary employer for the year that paid you hourly for at least 2,080 hours. Pay from other employers would count as secondary and could be excluded. The exclusion would phase out as your MAGI rises above $100,000 (single) or $150,000 (married filing jointly), and it would be gone by $150,000/$200,000. It would apply only to pay received after enactment and would last for five tax years. You would still pay Social Security and Medicare taxes, and normal wage withholding would apply.
Sponsors & CoSponsors
Sponsor
Bacon
NE • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in