HR7361119th CongressWALLET

No Tax on Restored Benefits Act

Sponsored By: Representative Gooden

Introduced

Summary

This bill would exclude from federal taxable income the portion of Social Security Title II monthly benefits that is tied to the Social Security Fairness Act of 2023 for payments made in 2025. It adds a special rule to Section 86(d) of the Internal Revenue Code so that any part of a monthly Title II benefit that can be traced to the 2023 Fairness Act and is paid in months beginning after December 31, 2024 and before January 1, 2026 would not count as a "social security benefit" for federal income tax purposes. All other rules in Section 86(d) would remain unchanged.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Lower taxes on restored Social Security

You would be able to exclude from your federal taxable income the part of your monthly Social Security (Title II) payment that comes from amounts restored by the Social Security Fairness Act of 2023. The exclusion would apply only to benefits paid for months beginning after December 31, 2024 and ending before January 1, 2026 (January through December 2025). You would only qualify if your monthly payment actually includes amounts attributable to that 2023 Act. This would not change the tax treatment of other Social Security amounts or other months.

Sponsors & CoSponsors

Sponsor

Gooden

TX • R

Cosponsors

  • Pingree

    ME • D

    Sponsored 2/4/2026

Roll Call Votes

No roll call votes available for this bill.

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