Plain English
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Permanent Tax Cuts for American Families Act of 2025 This bill makes permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act. Under current law, the standard tax deduction consists of a statutory base amount that is adjusted annually for inflation. For tax years 2018-2025, the Tax Cuts and Jobs Act increased the standard tax deduction statutory base amounts to $24,000 (from $6,000) for joint filers, $18,000 (from $4,400) for head-of-household filers, and $12,000 (from $3,000) for single filers, which almost doubled the inflation-adjusted standard tax deduction amount for most taxpayers. Under the bill, the increased standard tax deduction statutory base amounts of $24,000 for joint filers, $18,000 for head-of-household filers, and $12,000 for single filers are made permanent. The bill also makes permanent the annual adjustments to such amounts for inflation.
Market Impact Map
Action Timeline
2025-01-16
Referred to the House Committee on Ways and Means.
2025-01-16
Introduced in House
2025-01-16
Introduced in House
Full Bill Text
119 HR 523 IH: Permanent Tax Cuts for American Families Act of 2025 U.S. House of Representatives 2025-01-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 523 IN THE HOUSE OF REPRESENTATIVES January 16, 2025 Mr. Miller of Ohio (for himself, Mr. Feenstra , Mr. Smith of Nebraska , Mr. LaHood , Mrs. Miller of West Virginia , Ms. Tenney , Mr. Estes , Ms. Van Duyne , Mr. Kustoff , Mr. Finstad , and Mr. Calvert ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to permanently increase the standard deduction. 1. Short title This Act may be cited as the Permanent Tax Cuts for American Families Act of 2025 . 2. Increase in standard deduction made permanent (a) In general Section 63(c)(2) of the Internal Revenue Code of 1986 is amended— (1) by striking $4,400 in subparagraph (B) and inserting $18,000 , and (2) by striking $3,000 in subparagraph (C) and inserting $12,000 . (b) Inflation adjustment Section 63(c)(4) of such Code is amended to read as follows: (4) Adjustments for inflation (A) In general Each dollar amount in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for 2016 in subparagraph (A)(ii) thereof— (I) in the case of the dollar amounts contained in paragraph (2)(B) or (2)(C), 2017 , (II) in the case of the dollar amounts contained in paragraph (5)(A) or subsection (f), 1987 , and (III) in the case of the dollar amount contained in paragraph (5)(B), 1997 . (B) Rounding If any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (c) Conforming amendment Section 63(c) of such Code is amended by striking paragraph (7). (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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