RETIREES FIRST Act

This bill raises the income thresholds used to decide how much of your Social Security benefits count as taxable income. It sets new base amounts—$34,000 for single filers and $68,000 for joint filers—and keeps the special rule that married people who file separately and lived with their spouse have a $0 threshold. Starting with the 2026 tax year, these dollar amounts would go up each year with inflation, rounded to the nearest $1,000. The change applies to tax years beginning after December 31, 2025.

The bill says the Social Security and Railroad Retirement trust funds won’t lose money because of this change; the Treasury will make them whole. To help offset the cost, beginning in fiscal year 2027, the government would automatically cut an equal total amount from non‑security discretionary spending across many annual accounts, and the Office of Management and Budget must report on these cuts each year starting in 2028.

• Who is affected: People who receive Social Security benefits, especially single filers under $34,000 and joint filers under $68,000; married filing separately who lived with a spouse keep a $0 threshold.
• What changes: Higher thresholds for taxing benefits, annual inflation adjustments, trust funds reimbursed, and offsetting cuts to non‑security discretionary spending.
• When: Applies to tax years after 2025; spending offsets start in fiscal year 2027; annual reports start by January 1, 2028.