No Tax on Social Security

This bill would stop federal income taxes on Social Security benefits. It also covers Tier I railroad retirement benefits, so those would not be taxed either. To make sure Social Security, Medicare, and Railroad Retirement programs don’t lose money from this change, the bill sets aside federal funds to fill any gap. The change applies to tax years that start after the law is signed into effect, ending the rule that adds these benefits to taxable income for those years .

Key points:

• Who is affected: People who receive Social Security benefits and Tier I railroad retirement benefits.
• What changes: These benefits would no longer count as taxable income on federal taxes; the old rule is turned off for future tax years.
• Program funding: Federal money would be added to Social Security, Medicare, and Railroad Retirement trust funds to make up for lost tax revenue .
• When: For any tax year that begins after the law is enacted.

Introduced January 31, 2025 by Jefferson Van Drew · Last progress January 31, 2025