Explanation of Bill H.R. 4963 in Layman's Terms
Explanation of Bill H.R. 4963 in Layman's Terms
This bill, introduced by Mr. Boyle of Pennsylvania and co-sponsored by a large number of representatives, aims to amend the Internal Revenue Code of 1986 to provide certain deductions for workers. The bill is called the "Tax Fairness for Workers Act."
Section 2: Allowance of Deduction for Certain Expenses of the Trade or Business of Being an Employee
Section 2 of the bill introduces two types of deductions for workers. The first is an "above-the-line" deduction for union dues and expenses. Currently, workers cannot deduct union dues and expenses from their taxable income. This bill aims to change that and allow workers to deduct these expenses from their income before calculating their taxes.
The second deduction introduced is a miscellaneous itemized deduction for all other unreimbursed expenses workers incur in the trade or business of being an employee. This means that workers can deduct expenses related to their job, such as travel expenses, supplies, or other work-related costs, if their employer does not reimburse them for these expenses.
Effective Date
If this bill is passed, the deductions introduced in Section 2 will apply to taxable years beginning after December 31, 2022.