H.R. 7768 — Tax Relief for Renters Act of 2026

This section establishes, for taxable years beginning after December 31, 2026, an above-the-line deduction under new IRC §226 equal to 1/12 of a taxpayer's qualified rent expenses (i.e., amounts paid to lease the taxpayer's primary residence), capped at $4,000 per individual ($48,000 annualized). The deduction is unavailable if adjusted gross income exceeds specified thresholds—$125,000 for joint returns or surviving spouses, $85,000 for married filing separately, $80,000 for heads of household, or $75,000 for others—with such amounts adjusted for inflation after 2027.