Sponsors (7)
The bill temporarily excludes the 2025 portion of Title II benefit increases from taxable income, giving many retirees immediate after‑tax gains and possibly lower Medicare premiums while imposing a modest one‑year revenue loss and some administrative complexity and potential confusion about the benefit's permanence.
Seniors and other Title II beneficiaries receive higher after-tax income in 2025 because the portion of benefits attributable to the 2023 Fairness Act is excluded from gross income for that year.
Medicare beneficiaries who have income‑related premium calculations may face lower Part B and Part D premiums (or smaller future premium increases) because taxable income used for premium determinations will be lower for the applicable period.
Taxpayers benefit from a temporary, administrable rule because the bill directs Treasury/IRS to apply existing section 86 rules to identify and exclude the attributable amounts, reducing ambiguity in how the exclusion is implemented.
All taxpayers face a small reduction in federal income tax revenue for 2025 because the excluded attributable amounts are not taxed, which marginally increases budgetary pressure or shifts costs elsewhere.
Seniors and beneficiaries may be confused or misled by a short-lived benefit because the exclusion applies only for calendar year 2025, creating expectations of permanence that could complicate future planning.
Taxpayers receiving increased Title II payments could experience added complexity and potential delays while the IRS implements rules to determine the 'attributable' portion for 2025 benefits.
Based on analysis of 2 sections of legislative text.
Excludes from taxable Social Security income the portion of Title II payments attributable to the Social Security Fairness Act of 2023 for benefit months in 2025.
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
Excludes from taxable Social Security income the portion of Title II monthly payments that is attributable to benefit increases made by the Social Security Fairness Act of 2023, but only for benefits paid in the 2025 calendar year. In practical terms, affected beneficiaries will not include those restored/adjusted amounts in gross income for federal income tax calculation for months after December 31, 2024 and before January 1, 2026.