Introduces the “Second Job Tax Relief Act of 2024.”
Amends the Internal Revenue Code of 1986 to exclude compensation from secondary employment from income and payroll taxes for qualifying taxpayers.
Establishes a phase-out of the exclusion based on the taxpayer’s modified adjusted gross income, with full phase-out at $150,000 for married couples filing jointly and $100,000 for other filers.
Defines “secondary employment compensation” as compensation received from an employer other than the taxpayer’s primary employer, for which the taxpayer can elect a primary employer if they were compensated on an hourly basis for at least 2080 hours of work by such employer in a taxable year.
Specifies that the exclusion applies to social security taxes, with appropriated amounts to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund to offset the reduction in revenues.
Applies the exclusion to unemployment taxes and wage withholding.
Includes a sunset provision that ends the exclusion for compensation earned in taxable years beginning more than 5 years after the enactment of the legislation.
The amendments made by this legislation apply to amounts received after its enactment.