H.R. 3936 — what changed

“(8) Bonus guaranteed deduction for taxable years 2024 and 2025

“(A) In general—In the case of a taxable year beginning after December 31, 2023, and before January 1, 2026, the guaranteed deduction shall be increased by the amount of the bonus guaranteed deduction.

“(B) Bonus guaranteed deduction—For purposes of this paragraph, the bonus guaranteed deduction is—

changed “(i) $4,000 twice the dollar amount in effect under clause (iii) in the case of a joint return or a surviving spouse (as defined in section 2(a)),

“(ii) $3,000 in the case of a head of household, and

“(iii) $2,000 in any other case.

changed “(C) Adjustment for inflation—In the case of a taxable year beginning after 2024, each the dollar amount amounts in clauses (ii) and (iii) of subparagraph (B) shall each be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “2023” for “2016” in subparagraph (A)(ii) thereof.

“(D) Limitation on bonus guaranteed deduction based on modified adjusted gross income

“(i) In general—The bonus guaranteed deduction determined under subparagraph (B) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer's modified adjusted gross income as exceeds the threshold amount. For purposes of the preceding sentence, the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.

“(ii) Threshold amount—For purposes of clause (i), the threshold amount is—

“(I) $400,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),

“(II) $300,000 in the case of a head of household, and

changed “(III) $200,000 in any other case.”case.

added “(E) Bonus guaranteed deduction not allowed to dependents—In the case of any individual with respect to whom paragraph (5) applies for any taxable year, subparagraph (A) shall not apply.”