The Second Job Tax Relief Act would allow workers to exclude income from a second job from federal income tax and payroll taxes (Social Security, Medicare, and unemployment insurance). To qualify, a person must work at least 2,080 hours annually at a primary employer and then designate that employer; income from any other job would be tax-free up to certain limits. However, the tax break phases out for higher earners—it begins to disappear for single filers earning over $100,000 and married couples earning over $150,000. The Social Security and Medicare trust funds would be reimbursed from the federal government's general revenues to offset lost tax contributions. The provision would expire after five years, meaning it would only apply to secondary employment income earned through 2030.
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