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This bill would give tax relief to people who work a second job. It aims to let many workers exclude pay from their second job from federal income tax and payroll taxes, while pay from their main job stays taxed. The benefit would last for about five tax years after the bill becomes law.
How it works: If you are an hourly worker who logged at least 2,080 hours at one employer in the year (about full-time), you can pick that as your main employer. Pay from any other employer counts as your second job, and that pay would not be counted as taxable income. The break gets smaller as your income rises: it starts to phase out above $100,000 (single) or $150,000 (married filing jointly) and is fully gone by $150,000 (single) or $200,000 (married).
Key points
Referred to the House Committee on Ways and Means.
Introduced January 20, 2025 by Donald J. Bacon · Last progress January 20, 2025