Sponsors (8)
The bill temporarily boosts 2025 after-tax income for Social Security/Title II beneficiaries and may lower some Medicare premiums by excluding certain 2025 attributable amounts from income, but it reduces near-term federal revenue and introduces implementation complexity and potential confusion due to its one‑year scope.
Social Security and other Title II beneficiaries will receive higher after-tax income in 2025 because the portion of 2023 Fairness Act payments attributable to 2025 is excluded from gross income.
Some Medicare beneficiaries may pay lower income-related Medicare Part B and D premiums (IRMAA) because the exclusion lowers modified adjusted gross income used in premium calculations.
The bill directs Treasury/IRS to apply existing Section 86 rules to identify and exclude attributable amounts, creating a temporary, administrable process for implementing the tax exclusion.
Taxpayers receiving increased Title II payments could face complexity and possible delays while IRS implements rules to determine the 'attributable' portion, causing uncertainty in 2025 filings or withholding.
Excluding the 2025 attributable amounts from taxable income reduces federal income tax revenue for that year, modestly increasing budgetary pressure or shifting costs elsewhere.
The exclusion applies only to calendar year 2025, so beneficiaries may receive a short-lived benefit that could create confusion or false expectations of permanence.
Based on analysis of 2 sections of legislative text.
Excludes from taxable income the portion of Title II Social Security payments attributable to the Social Security Fairness Act of 2023 for benefits paid in 2025.
Excludes from taxable Social Security income the portion of Title II monthly benefits that is attributable to changes made by the Social Security Fairness Act of 2023 for benefits paid during 2025. The exclusion applies only to amounts paid for months beginning after December 31, 2024 and ending before January 1, 2026, and is applied through existing Internal Revenue Code rules for computing taxable Social Security benefits.
Official title: To amend the Internal Revenue Code of 1986 to exclude from gross income certain benefits received by reason of the Social Security Fairness Act of 2023.
Introduced February 4, 2026 by Lance Gooden · Last progress February 4, 2026