119th (2025–2027)
H.R. 2655
H.R. 2655 would eliminate the federal income tax on unemployment compensation benefits for all future recipients. Currently, people receiving unemployment benefits must include those payments as taxable income on their federal tax returns, which can increase their tax liability. Under this bill, unemployment benefits received after December 31, 2024, would no longer be subject to federal income tax. The legislation would affect millions of Americans who receive unemployment insurance during periods of joblessness. The bill has no specific funding provision since it reduces federal tax revenue rather than allocating funds, and it would take effect immediately for any unemployment benefits received after the end of 2024.