H.R. 3769 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Jun 5, 2025
What this bill does
In plain words · AI-written from the official summaryExcludes dependent income from health insurance eligibility
This bill changes how the government calculates household income when deciding who qualifies for help paying health insurance premiums. Right now, if your dependent child or young adult earns wages or runs their own business, that income counts toward your total household income. This bill would exclude those earnings from that calculation, but only up to 15% of your own income. It applies to dependents under 18, or under 24 if they're a full-time or part-time student, apprentice, or in a job training program.
How it affects you
If you're a parent or guardian claiming dependents who have their own income, this could help you qualify for larger premium tax credits (the government money that helps you pay for health insurance). Families with lower household incomes after this change would get more help with insurance costs. The official summary doesn't specify exactly how many families this affects or how much their costs would change.
Read the official summary (Introduced in House, Jun 5, 2025)
Dependent Income Exclusion Act of 2025
This bill excludes the wages and net earnings from self-employment of a dependent of a taxpayer from the calculation of total household income for purposes of determining eligibility for and the amount of the refundable premium tax credit, subject to limitations.
Under current law, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL). For tax years before 2021 and after 2025, taxpayers must have a household income that meets or exceeds 100% but is less than 400% of the FPL to be eligible for the tax credit.
Further, under current law, the calculation of the premium tax credit is based, in part, on taxpayers’ household income such that taxpayers with lower household incomes are eligible for a higher premium tax credit.
The bill excludes from household income the wages and net earnings from self-employment of a dependent of the taxpayer who (1) is under 18 years old; or (2) is under 24 years old and is, during any five calendar months of the year, a full- or part-time student in an educational organization (excluding for-profit educational institutions), is in an apprentice program, or is participating in a job training program.
The amount that may be excluded is limited to 15% of the taxpayer’s modified adjusted gross income.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 3769
A BILL
Dependent Income Exclusion Act of 2025
Sponsor: Rep. Steven Horsford (D-NV-4) · Introduced Jun 5, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jun 5, 2025: “Referred to the House Committee on Ways and Means.”