A bill to amend the Internal Revenue Code of 1986 to increase the threshold amounts for inclusion of Social Security benefits in income, and for other purposes.
About This Bill
Committee
Latest Action · December 19, 2024
Read twice and referred to the Committee on Finance.
The RETIREES FIRST Act would increase the income thresholds at which Social Security benefits become subject to federal income taxes. Currently, seniors must include a portion of their Social Security income in their taxable income once their total income exceeds certain limits (currently $25,000 for single filers and $32,000 for married couples filing jointly). This bill raises those thresholds to $34,000 for single filers and $68,000 for married couples, and ties them to inflation adjustments each year after 2024. The bill affects retirees and other Social Security recipients whose income falls between the old and new thresholds by reducing their federal tax burden. To offset the costs, the legislation requires automatic cuts to non-defense federal spending starting in fiscal year 2026, with the amount of cuts determined by how much the government loses in tax revenue and Social Security trust fund transfers due to the changes. The changes would take effect for tax years beginning after December 31, 2024.
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