Bipartisan Push: Lawmakers Seek to Shield Holiday Bonuses from IRS

Rep. Ryan Mackenzie, R-Pa., introduced the bipartisan Holiday Bonus Tax Relief Act of 2025 on Thursday, aiming to exempt year-end bonuses from federal income taxes.

The legislation, co-sponsored by Rep. Jared Moskowitz, D-Fla., would allow workers receiving holiday bonuses up to $2,500 to become federal income tax free. Mackenzie’s office said the bill targets relief for middle-class Americans amid ongoing economic pressures.

“Hardworking Americans deserve to keep more of their holiday bonuses without Uncle Sam taking a bigger bite,” Mackenzie said in a statement. The measure has been referred to the House Ways and Means Committee for consideration.