Summary of HR 904: No Tax on Social Security

Bill Overview

Bill Number: HR 904

Title: No Tax on Social Security

Status: Introduced in House

Introduced Date: January 31, 2025

Classification: Bill

Purpose and Intent

The primary purpose of HR 904 is to eliminate federal income taxes on Social Security benefits. This legislation aims to provide financial relief to retirees and individuals who rely on Social Security as a significant source of income. By removing the tax burden on these benefits, the bill seeks to enhance the financial security of millions of Americans.

Key Provisions

• Elimination of Taxes: The bill proposes to amend the Internal Revenue Code to ensure that Social Security benefits are not subject to federal income tax.
• Impact on Income Calculation: Currently, depending on an individual's total income, up to 85% of Social Security benefits can be taxed. HR 904 aims to change this by exempting all Social Security benefits from taxation.

Who Would Be Affected?

• Social Security Recipients: The primary beneficiaries of this bill would be retirees and individuals receiving Social Security benefits, which includes a significant portion of the elderly population.
• Low to Middle-Income Families: The bill is particularly aimed at low to middle-income families who depend heavily on Social Security for their livelihood, potentially increasing their disposable income.

Legislative Actions

• Referred to Committee: On January 31, 2025, HR 904 was referred to the House Committee on Ways and Means for further consideration.
• Introduced in House: The bill was introduced in the House on the same day, marking the beginning of its legislative journey.

Sponsors

• Primary Sponsor: Jefferson Van Drew
• Cosponsors: Thomas Massie and Gus M. Bilirakis

Related Legislation

• Companion Bill: S 2716, which is a companion bill in the Senate, aims to achieve similar objectives regarding the taxation of Social Security benefits.

Conclusion

HR 904 represents a significant legislative effort to alleviate the tax burden on Social Security benefits, potentially impacting millions of Americans who rely on these funds for their financial stability. As the bill progresses through the legislative process, its implications for retirees and the broader economy will be closely monitored.