Permanent Tax Cuts for American Families Act of 2025
Permanent Tax Cuts for American Families Act of 2025
Plain Language Summary
# Permanent Tax Cuts for American Families Act of 2025 – Summary **What the bill would do:** This bill would make permanent the higher standard tax deductions that were temporarily created in 2017. Currently, these increased deductions are set to expire after 2025. The bill would lock in these higher amounts indefinitely: $24,000 for married couples filing jointly, $18,000 for heads of household, and $12,000 for single filers.
These amounts would continue to adjust upward automatically each year for inflation. **Who it affects and key details:** This change would affect virtually all individual taxpayers, as the standard deduction is used by the majority of Americans when filing taxes. A higher standard deduction generally means lower taxable income and potentially lower taxes owed. The bill essentially extends tax provisions from the 2017 Tax Cuts and Jobs Act that were originally set to expire, making them permanent rather than temporary. **Current status:** The bill (HR 523) was introduced by Representative Max Miller (R-OH) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Permanent Tax Cuts for American Families Act of 2025 This bill makes permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act. Under current law, the standard tax deduction consists of a statutory base amount that is adjusted annually for inflation. For tax years 2018-2025, the Tax Cuts and Jobs Act increased the standard tax deduction statutory base amounts to $24,000 (from $6,000) for joint filers, $18,000 (from $4,400) for head-of-household filers, and $12,000 (from $3,000) for single filers, which almost doubled the inflation-adjusted standard tax deduction amount for most taxpayers.Under the bill, the increased standard tax deduction statutory base amounts of $24,000 for joint filers, $18,000 for head-of-household filers, and $12,000 for single filers are made permanent. The bill also makes permanent the annual adjustments to such amounts for inflation.
Latest Action
Referred to the House Committee on Ways and Means.