H.R. 1833 makes two changes to the federal tax code. First, it renames the "standard deduction" as the "guaranteed deduction" throughout the tax code, effective for tax years beginning after December 31, 2025. Second, it adds a temporary bonus to the guaranteed deduction for 2026 and 2027: married couples filing jointly receive an extra $4,000, heads of household receive $3,000, and all other filers receive $2,000. This bonus amount adjusts for inflation in 2027, rounded to the nearest $50. However, the bonus phases out at a rate of 5 percent for higher-income earners whose modified adjusted gross income exceeds $400,000 (married joint), $300,000 (head of household), or $200,000 (other filers). The bill effectively provides a temporary tax benefit to working families by reducing their taxable income, with greater benefits targeted at lower and middle-income households.
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