Federal RuleAug 21
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DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-hr-2655119th CongressWALLET
To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.
Sponsored By: Representative Thanedar, Shri [D-MI-13]
Introduced
Summary
Ends federal income tax on unemployment benefits. This bill would amend the Internal Revenue Code so unemployment compensation is not counted as gross income for taxable years beginning after December 31, 2024. It also applies to amounts received after December 31, 2024 in taxable years ending after that date.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
No federal tax on unemployment benefits
If enacted, unemployment benefits you receive after December 31, 2024 would not count as federal taxable income. The rule would apply to taxable years beginning after December 31, 2024. It would also apply to amounts received after that date, in tax years ending after that date. If you get unemployment in 2025 or later, you could owe less federal income tax. This is about federal income tax only. To estimate savings, multiply your unemployment benefits by your marginal federal tax rate.
Sponsors & CoSponsors
Sponsor
Thanedar, Shri [D-MI-13]
MI • D
Cosponsors
Rep. Johnson, Henry C. "Hank" [D-GA-4]
GA • D
Sponsored 4/3/2025
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 4/3/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 4/3/2025
Rep. Bynum, Janelle S. [D-OR-5]
OR • D
Sponsored 4/3/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov