Tax Relief from Tariffs and High Costs Act

This bill would give many taxpayers a one-time break on their 2025 federal taxes. It creates a refundable credit equal to 10% of your federal income tax for that year. If you qualify, this credit can lower what you owe and could increase your refund for the 2025 tax year.

Key points:

• Who is eligible: Individuals with modified adjusted gross income at or below $100,000, or $200,000 for married couples filing jointly. Above those amounts, you don’t qualify.
• What changes: You can claim a credit worth 10% of your federal income tax for the year; the bill describes it as refundable.
• When it applies: For tax years that start after December 31, 2024 and before January 1, 2026 (the 2025 tax year).