Sponsors (4)
The bill gives temporary tax relief to seniors and Social Security beneficiaries for 2025 incremental Title II payments, at the cost of modest federal revenue loss and added year-to-year complexity and compliance risk for beneficiaries and preparers.
Seniors and other Social Security beneficiaries will pay less federal income tax on the temporary 2025 increase to Title II benefits because the bill excludes the incremental 2025 payments from taxable income, which also simplifies tax reporting for beneficiaries and return preparers.
All taxpayers bear a modest federal revenue cost because excluding the 2025 incremental Social Security amounts reduces federal receipts and may slightly increase the deficit or reduce funding available for other programs.
Seniors, beneficiaries, and tax preparers face unequal and temporary tax treatment because the exclusion applies only to certain months in 2025, which could create confusion and complexity across tax years.
Some beneficiaries may misinterpret the temporary exclusion and fail to report other taxable portions of Social Security, increasing the risk of incorrect returns or IRS audits for affected filers.
Based on analysis of 2 sections of legislative text.
Excludes the portion of Social Security benefits restored by the Social Security Fairness Act of 2023 from taxable Social Security income for benefits paid in 2025.
Introduced February 4, 2026 by Lance Gooden · Last progress February 4, 2026
Excludes from taxable Social Security income the portion of monthly Title II benefits that was restored by the Social Security Fairness Act of 2023 for benefits paid during 2025. The change amends the Internal Revenue Code so that that incremental restored amount is not counted as "social security benefit" for the purpose of calculating the taxable portion of Social Security benefits for months beginning after December 31, 2024 and before January 1, 2026.