[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 560 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 560
To amend the Internal Revenue Code of 1986 to exclude compensation from
secondary employment for certain taxpayers from the income tax and
payroll taxes.
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IN THE HOUSE OF REPRESENTATIVES
January 20, 2025
Mr. Bacon introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to exclude compensation from
secondary employment for certain taxpayers from the income tax and
payroll taxes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Second Job Tax Relief Act of 2025''.
SEC. 2. EXCLUSION OF COMPENSATION FOR CERTAIN SECONDARY EMPLOYMENT FROM
INCOME AND PAYROLL TAX.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139I the following new section:
``SEC. 139J. EARNED INCOME FROM ADDITIONAL EMPLOYMENT.
``(a) In General.--In the case of a qualifying taxpayer, gross
income shall not include secondary employment compensation.
``(b) Phase-Out.--The amount of compensation excluded from gross
income under subsection (a) (determined without regard to this
subsection) shall be reduced (but not below zero) by the amount which
bears the same ratio to the amount which is so excludable as--
``(1) the excess (if any) of--
``(A) the taxpayer's modified adjusted gross income
(as defined in section 36(b)(2)(B)) for such taxable
year, over
``(B) $100,000 ($150,000 in the case of a married
couple filing jointly), bears to
``(2) $50,000.
``(c) Secondary Employment Compensation.--
``(1) In general.--For purposes of this section, the term
`secondary employment compensation' means compensation received
for employment during a taxable year with respect to which an
individual has made an election under paragraph (2) for an
employer other than the primary employer of such individual.
``(2) Primary employer.--
``(A) Election.--A taxpayer may elect to designate,
with respect to a taxable year, a primary employer if
such individual was compensated on an hourly basis for
not less than 2080 hours of work by such employer.
``(B) Definition.--For purposes of this section,
the term `primary employer' means, with respect to a
taxable year, an employer designated by the taxpayer
under subparagraph (A).
``(d) Sunset.--Subsection (a) shall not apply to compensation
earned in taxable years beginning after the date is that is 5 years
after the date of the enactment of this section.''.
(b) Application to Employment Taxes.--
(1) Social security taxes.--
(A) In general.--Section 3121(a) of such Code is
amended by striking ``or'' at the end of paragraph
(22), by striking the period at the end of paragraph
(23) and inserting ``; or'', and by inserting after
paragraph (23) the following new paragraph:
``(24) any amount of compensation which is excludable from
gross income under section 139J.''.
(B) Trust funds held harmless.--There are hereby
appropriated to the Federal Old-Age and Survivors
Insurance Trust Fund, the Federal Disability Insurance
Trust Fund, and the Federal Hospital Insurance Trust
Fund amounts equivalent to the reduction in revenues to
each such Trust Fund, respectively, by reason of the
amendment made by subparagraph (A) (determined without
regard to this subparagraph). Amounts appropriated by
the preceding sentence shall be transferred from the
general fund at such times and in such manner as to
replicate to the extent possible the transfers which
would have occurred to such Trust Fund had this section
not been enacted.
(2) Unemployment taxes.--Section 3306(b) of such Code is
amended by striking ``or'' at the end of paragraph (19), by
striking the period at the end of paragraph (20) and inserting
``; or'', and by inserting after paragraph (20) the following
new paragraph:
``(21) any amount of compensation which is excludable from
gross income under section 139J.''.
(3) Wage withholding.--Section 3401(a) of such Code is
amended by striking ``or'' at the end of paragraph (22), by
striking the period at the end of paragraph (23) and inserting
``; or'', and by inserting after paragraph (23) the following
new paragraph:
``(24) any amount of compensation which is excludable from
gross income under section 139J.''.
(c) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139I the following new item:
``Sec. 139J. Earned income from additional employment.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts received after the date of the enactment of this Act.
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