No Tax on Restored Benefits Act

Summary

Excludes from taxable income for 2025 the portion of Social Security Title II payments that result from changes made by the Social Security Fairness Act of 2023. The exclusion applies only to benefits paid for months after December 31, 2024 and before January 1, 2026 and is applied using existing tax rules under section 86 by the Treasury/IRS.

• Temporarily excludes from taxable income the portion of Title II Social Security payments attributable to the Social Security Fairness Act of 2023.
• Exclusion applies only to benefits paid for months after Dec 31, 2024 and before Jan 1, 2026 (effectively calendar year 2025).
• Does not change benefit amounts themselves—only federal income tax treatment for the attributable portion during 2025.
• Requires the Treasury/IRS to apply the exclusion through existing section 86 rules when computing taxable Social Security income.
• Likely reduces federal income tax liability for affected beneficiaries for 2025 and may modestly lower federal revenues for that year.
• Applies only to amounts that can be tied specifically to the 2023 amendments, not to all Social Security payments.
• Is brief and narrowly targeted; contains only two short provisions (short title and the tax exclusion).
• No new ongoing programmatic authorizations or appropriations are created by the measure.