No Tax on Restored Benefits Act

119th Congress Introduced by Sharice Davids and 5 co-sponsors

Excludes the portion of monthly Social Security benefits tied to the 2023 amendments from gross income for January 1–December 31, 2025.

Introduced in House

Summary of HR 7361 (119th Congress) – No Tax on Restored Benefits Act

Purpose and intent

The bill, introduced February 4, 2026, aims to amend the Internal Revenue Code to exclude certain Social Security benefits from gross income.

Specifically, it seeks to prevent portions of monthly Social Security insurance benefits from being taxed at the federal level when those portions arise from amendments made by the Social Security Fairness Act of 2023, for benefits paid in a defined time window.

Key provisions and changes

Amends Section 86(d) of the Internal Revenue Code by adding a new paragraph (6).

New rule details:

The term “social security benefit” shall not include that portion of an individual’s monthly insurance benefit under Title II of the Social Security Act that is attributable to the amendments made by the Social Security Fairness Act of 2023.
The exclusion applies only to benefits paid for months beginning after December 31, 2024, and ending before January 1, 2026.

In effect, this provision creates a temporary exclusion from gross income for a subset of Social Security benefits that are a result of the 2023 amendments, during the specified period.

Who or what would be affected

Individuals receiving monthly Social Security insurance benefits under Title II, where a portion of those benefits is attributable to the 2023 amendments and paid in the window January 1, 2025, through December 31, 2025 (months after 2024-12-31 and before 2026-01-01).

The provision targets the tax treatment of those “amendment-attributable” benefits, potentially reducing federal income tax liability for affected recipients during the stated period.

Procedural and timeline aspects

The No Tax on Restored Benefits Act is a proposed federal bill in the House of Representatives.

It references the Social Security Fairness Act of 2023 to define which benefits are eligible for the gross income exclusion.

The eligible time frame for the tax exclusion spans from January 1, 2025, to December 31, 2025 (months beginning after December 31, 2024 and before January 1, 2026).

The bill has a bipartisan set of sponsors and co-sponsors, including members from both major parties, and was referred to the House Committee on Ways and Means.

Practical impact considerations

Tax treatment: Provides a targeted, temporary exclusion from gross income for a subset of Social Security benefits linked to the 2023 amendments.

Fiscal effect: The exclusion reduces federal income tax revenues for the period in which it applies; the bill does not specify broader changes to Social Security benefit levels or taxation outside the defined window.

Administration: Requires identification of the eligible “amendment-attributable” portion of benefits and accurate reporting to implement the exclusion.

If you’d like, I can map this to a plain-language one-page briefing or compare it to the provisions of the 2023 Social Security Fairness Act to illustrate the interaction.