Bill > S1109

This bill amends the Internal Revenue Code to provide a temporary reduction in the amount of Social Security and Tier 1 Railroad Retirement benefits that are included in a taxpayer's gross income for tax years 2026 and 2027. Specifically, the bill introduces a phased reduction in the taxable portion of these benefits: for the 2026 tax year, 10% of the normally taxable amount will be excluded from gross income, and for the 2027 tax year, 20% will be excluded. The bill also ensures that the Social Security, Disability Insurance, and Medicare Hospital Insurance Trust Funds are fully compensated for the reduced tax revenue by appropriating equivalent amounts from the general fund. These changes would apply to taxable years beginning after December 31, 2025, providing temporary tax relief for Social Security and Railroad Retirement benefit recipients by reducing the portion of their benefits subject to income tax.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1109/all-info