This bill raises the income levels at which Social Security benefits start getting taxed. For single filers, the “base amount” becomes $34,000; for joint filers, $68,000. The special rule for some married people filing separately stays the same (their base amount is $0 if they lived with their spouse at any time that year). Starting with tax years after 2025, these amounts will go up over time with inflation. The changes apply to tax years beginning after December 31, 2025 .

To protect Social Security and Railroad Retirement funds, the bill directs money to make up for any lost tax-related transfers to those funds. Beginning in fiscal year 2027 and each year after, it also cuts other, non‑security federal spending by the total yearly cost of this tax change, spread across regular appropriations. An annual public report will list these cuts starting by January 1, 2028 .

• Who is affected: People who receive Social Security and pay taxes on their benefits; especially single filers around $34,000 and couples around $68,000 of income. Some married people filing separately remain subject to a $0 base amount if they lived with their spouse during the year .
• What changes: Higher income thresholds before Social Security benefits are taxed; thresholds adjust for inflation; federal non‑security spending is reduced to offset costs; trust funds are held harmless .
• When: Applies to tax years after December 31, 2025; spending changes begin in fiscal year 2027; first report due by January 1, 2028 .