H.R. 7361: No Tax on Restored Benefits Act

This bill, known as the No Tax on Restored Benefits Act, proposes changes to the Internal Revenue Code regarding the taxation of certain Social Security benefits. Here is a summary of the key aspects of the bill:

Purpose of the Bill

The primary intent of this bill is to amend the tax code so that specific Social Security benefits are not considered taxable income. This change addresses benefits restored to individuals as a result of the Social Security Fairness Act of 2023.

Definition of Benefits Excluded from Gross Income

The bill specifically states that certain monthly insurance benefits received under Title II of the Social Security Act will be excluded from an individual's gross income. The criteria for this exclusion are:

• The benefits must be attributable to amendments made by the Social Security Fairness Act of 2023.
• The benefits in question must have been paid to individuals for months beginning after December 31, 2024, and before January 1, 2026.

Impact on Taxable Income

Under this bill, individuals receiving these particular Social Security benefits would not have to include them in their taxable income calculations. This aims to alleviate the tax burden on recipients of benefits that were restored to them.

Implementation Timeline

The changes in taxable income would apply to benefits received during the specified time frame after the enactment of the Social Security Fairness Act of 2023, allowing for a temporary measure that could help retirees and other beneficiaries manage their finances more effectively during that period.

Conclusion

Overall, the No Tax on Restored Benefits Act seeks to amend the tax code to provide financial relief to specific Social Security beneficiaries by excluding a portion of their benefits from taxable income.

Relevant Companies

None found.