H.R. 3515: To amend the Internal Revenue Code of 1986 to exclude military bonuses from gross income.

This bill, known as H.R. 3515, aims to amend the Internal Revenue Code of 1986 by specifically addressing the taxation of military bonuses. The key points of the bill are as follows:

Exclusion of Military Bonuses from Gross Income

The main provision of this bill is to change how military bonuses are taxed. It proposes to remove the current language that includes "any qualified military benefit" in gross income calculations. Instead, it will allow for the exclusion of:

• Any bonus paid to a member of the uniformed services under Chapter 5 of Title 37, United States Code.
• Any qualified military benefit.

This means that military bonuses will not count as income when calculating federal taxes for service members, potentially reducing their tax liability.

Effective Date

The changes specified in this bill will take effect for taxable years beginning after December 31, 2024. This means that service members would see this change reflected in their taxes starting with the tax year 2025.

Intent and Purpose

The intent behind this bill is to provide financial relief to military personnel by ensuring that bonuses, which are often given as incentives or rewards, are not subject to federal taxation. This aligns with broader efforts to support service members and acknowledge their contributions.

Relevant Companies

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