This bill would make Social Security benefits tax-free for federal income taxes. Right now, depending on your income level, you might have to pay federal income tax on some of your Social Security benefits. This bill would change that so you wouldn't owe any federal income tax on those benefits at all.

The bill also applies the same tax break to railroad retirement benefits (a similar program for railroad workers). Since removing these benefits from taxable income would reduce the money flowing into the Social Security and Medicare trust funds, the bill includes funding to make up for that loss so these programs don't lose money overall.

In practical terms, if you receive Social Security or railroad retirement benefits, you'd keep more of that money instead of paying federal taxes on it. This would be especially helpful for retirees who rely heavily on these benefits as their main source of income.

No Tax on Social Security

Van Drew, Jefferson

No Tax on Social Security This bill excludes Social Security and Tier I railroad retirement benefits from gross income for purposes of federal income taxes. The bill also provides funds to cover reductions in transfers to the Social Security, Medicare, and Railroad Retirement trust funds resulting from the enactment of this bill.