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

• Who is affected: Hourly workers with a full-time main job (2,080+ hours) who also have a second job.
• What changes: Second job pay would be excluded from federal income tax (and, as stated by the bill, payroll taxes), with the benefit phasing out at higher incomes.
• When: For up to five tax years after the bill becomes law.