No Tax on Social Security
Sponsored By: Representative Van Drew
Introduced
Summary
Ends federal tax on Social Security benefits. The bill removes Social Security payments from taxpayers' gross income and adjusted gross income for taxable years after enactment and creates a funding fix to protect trust funds from any lost transfers.
Show full summary
- Seniors and Social Security recipients: Social Security benefits will no longer be counted in gross income or adjusted gross income for future taxable years, which raises after-tax income for beneficiaries.
- Social insurance and retirement funds: Each fund under the Social Security Act (including the Federal Hospital Insurance Trust Fund) and funds under the Railroad Retirement Act of 1974 will receive annual Treasury appropriations equal to any reduction in transfers caused by the repeal, so those funds see no net transfer loss.
*This bill increases federal outlays by requiring annual Treasury payments that replace transfers otherwise directed to Social Security, Medicare Hospital Insurance, and Railroad Retirement funds.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
No federal tax on Social Security
If enacted, your Social Security benefits would not be taxed by the federal government. For tax years that start after enactment, you would not include these benefits in your income. Many people who get Social Security would owe less income tax. Your savings would depend on your other income and filing status.
Social Security and Medicare trust funds protected
If enacted, the government would replace money that trust funds lose because Social Security benefits stop being taxed. This would cover Social Security, Medicare’s hospital insurance trust fund, and Railroad Retirement. Treasury would pay each fund each year an amount equal to its loss, using money not otherwise appropriated. This is meant to keep these trust funds whole and protect benefit payments.
Sponsors & CoSponsors
Sponsor
Van Drew
NJ • R
Cosponsors
Massie
KY • R
Sponsored 2/14/2025
Bilirakis
FL • R
Sponsored 6/23/2025
Roll Call Votes
No roll call votes available for this bill.
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