H.R. 557 — Working Class Bonus Tax Relief Act of 2025

This section establishes a new deduction under IRC §224 for bonuses received by an individual from an employer, equal to the lesser of the bonus amount or 15% of the individual's non-bonus wages from that employer for the taxable year. The deduction is allowed above-the-line (i.e., available to non-itemizers via an amendment to IRC §63(b)); for itemizers, it is excluded from miscellaneous itemized deductions (IRC §67(b)) and the overall limitation on itemized deductions (IRC §68(c)); it is unavailable to taxpayers with adjusted gross income exceeding $200,000 (married filing jointly), $150,000 (head of household), or $100,000 (other filers); and it terminates for amounts received after December 31, 2029. The section also directs the Treasury Secretary to modify income tax withholding tables and procedures accordingly, with the amendments applying to amounts received after enactment.