H.R. 3769 — Dependent Income Exclusion Act of 2025

This section establishes an exception to the household income calculation for the premium tax credit (PTC) under IRC §36B by excluding wages or self-employment income of a taxpayer's dependents who (1) have not attained age 18 by year-end or (2) have not attained age 24 by year-end and, for at least 5 months that year, are full- or part-time students (with modified qualifying student definition), participating in qualified job-training programs under WIOA §134(c)(3) (29 U.S.C. §3174(c)(3)), or registered apprenticeships under the National Apprenticeship Act (29 U.S.C. §50 et seq.). (Thus, such exclusions may increase PTC eligibility or amounts for families with working youth in education or training.) The exclusion is limited to the extent aggregate excluded dependent income does not exceed 15% of the taxpayer's modified adjusted gross income and, for taxpayers in Medicaid non-expansion states, does not reduce household income below 100% of the federal poverty line. The section makes conforming amendments to specify the exception in PTC rules and to require reporting of applicable dependent information and (effective for taxable years beginning after enactment.