No Tax on Restored Benefits Act

Key Points

• This bill would prevent the federal government from taxing certain Social Security payments that were recently restored to retirees. It changes tax rules so these specific benefits are not counted as part of a person's taxable income.
• The plan targets people who received extra money because of a previous law that fixed benefit calculations for certain workers. This often includes former teachers, police officers, and other government employees who previously had their benefits reduced by specific federal rules.
• This tax exemption would cover benefits paid for the months during the 2025 calendar year. The goal is to make sure these retirees get to keep the full amount of their restored benefits without having to pay a portion back in federal taxes.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.