Senior Citizens Tax Elimination Act

This bill would stop the federal government from taxing Social Security benefits. It says the tax on these benefits ends for tax years that start after the bill becomes law. It also tells the Treasury to send money to the Social Security and Railroad Retirement trust funds so they don’t lose funding because of this change. Congress also states it does not plan to raise other taxes to cover these transfers, though that statement is not binding law.

Key points

• Who is affected: People who receive Social Security or Railroad Retirement benefits.
• What changes: Social Security benefits would no longer count as taxable income on federal returns; trust funds would be “made whole” with general Treasury money.
• When: Starting with tax years that begin after the bill becomes law.