A brand new proposal from lawmakers is pushing to end federal tac on Social Security retirement benefits as early as next year, providing a much needed relief for retirees, according to Kiplinger.
The bill, being called the You Earned It, You Keep It Act, is outlined in a way which federal taxes on Social Security income would be eliminated beginning in 2025 (tax returns filed in early 2026).
Sponsors are heralding it as a “win win”
Minnesota Rep. Angie Craig (D-Minn.) issued an official statement – “It’s a tax cut for seniors and a way to ensure more Americans can depend on the Social Security benefits they’ve earned,”
It’s worth noting that this isn’t the first time a bill of this nature has been introduced by lawmakers, which raises some serious questions on if this time will be any different than in the past.
To say that this bill, if signed into law, would have a profound impact would be a major understatement. 85% of Social Security benefits are taxable at the federal level, and if this is successful it was be especially impactful for those retirees who receive other kinds of taxable income, such as monies from retirement accounts.