This bill would change how the dollar thresholds used to decide how much of Social Security benefits are taxable. It adds a new subsection (g) to section 86 of the Internal Revenue Code. For taxable years beginning after 2026, the four dollar amounts listed in section 86(c) (paragraphs (1)(A), (1)(B), (2)(A), and (2)(B)) would be increased each year by a cost-of-living adjustment. The adjustment uses the same method in the tax code but substitutes “calendar year 2025” for “calendar year 2016.” If an adjusted amount is not a multiple of $100, the bill requires rounding up to the next $100.
The bill changes how the income thresholds for taxing Social Security benefits are updated over time. Beginning after 2026, those threshold amounts would be increased for inflation each year and rounded to the next $100. This alters the way taxable Social Security benefit calculations use those dollar amounts.
No publicly available information on the bill’s budgetary or revenue effects is included in the bill text or metadata provided.
No publicly available information on proponents' statements or arguments is included in the bill text or metadata provided.
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