H.R. 2655: To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.

This bill proposes an amendment to the Internal Revenue Code of 1986 that would eliminate the federal income tax on unemployment compensation. Below are the key points of the bill:

Termination of Tax on Unemployment Compensation

The bill seeks to bring an end to the collection of federal income tax on unemployment benefits starting after December 31, 2024. Specifically, the following changes would be made:

• Removal of Tax Requirement: The bill removes the requirement that unemployment compensation be included in gross income for tax purposes beginning in the tax year that starts after the end date stated above. This means that individuals receiving unemployment benefits will not have to pay federal income tax on those benefits.
• Effective Date: The proposed changes are set to take effect for any unemployment compensation received after December 31, 2024, impacting the taxable income reported by individuals in subsequent tax years.

Objective of the Bill

The primary purpose of the bill is to increase the net income for individuals who rely on unemployment benefits by allowing them to keep more of the funds they receive. This measure may be seen as a way to provide financial relief to those who are unemployed.

Relevant Companies

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