This bill would let many workers deduct part of a cash bonus on their federal taxes. You could deduct up to an amount equal to 15% of your regular wages from the same employer for that year. This lowers the income you pay tax on. The break would only last through 2029. After that, bonuses wouldn’t qualify. People with higher incomes would not be able to use this deduction .

Key points:

• Who is eligible: Workers with adjusted gross income at or below $100,000 (single), $150,000 (head of household), or $200,000 (married filing jointly) .
• What changes: You can deduct part of your bonus—up to 15% of your non-bonus wages from the same employer for the year.
• When: Applies to amounts received through December 31, 2029; no bonus deduction after that date.