Why This Matters
This bill aims to lower the amount of Social Security benefits that people have to report as income for tax purposes, helping them keep more money in their pockets.
If you receive Social Security benefits, you could pay less in taxes for the next two years.
Affects: Seniors and retirees receiving Social Security or railroad retirement benefits.
What changes is this bill making?
1. This bill temporarily reduces the taxable income from Social Security benefits. 2. It applies to old-age and survivors insurance benefits and tier 1 railroad retirement benefits. 3. For 2026, taxpayers will include 10% less of their benefits as income. 4. For 2027, taxpayers will include 20% less of their benefits as income. 5. The bill ensures that trust funds for Social Security and Medicare are protected.
Who is affected?
Seniors and retirees receiving Social Security or railroad retirement benefits.