Tax Relief Unleashed for Seniors by Trump Act in plain language
1: Short title
This section would let the Act be called the Tax Relief Unleashed for Seniors by Trump Act.
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1. Short title This Act may be cited as the Tax Relief Unleashed for Seniors by Trump Act .
2: Increase in exclusion from gross income of social security benefits
This section would raise four dollar thresholds in section 86(c) of the Internal Revenue Code that are used to decide how much of a person's Social Security benefits counts as taxable income. It would raise the amount in paragraph (1)(A) from $25,000 to $50,000, the amount in paragraph (1)(B) from $32,000 to $64,000, the amount in paragraph (2)(A) from $34,000 to $59,000, and the amount in paragraph (2)(B) from $44,000 to $76,000. Because these thresholds are used to figure how much of a person's Social Security benefits are excluded from gross income, raising them would let more Social Security benefit income go untaxed. Starting with any tax year that begins after December 31, 2026, this section would also add a rule requiring all four dollar amounts to increase each year for inflation, using the same cost-of-living formula the tax code uses in section 1(f)(3), except substituting calendar year 2025 for calendar year 2016 as the comparison year; any increase that is not a multiple of $100 would be rounded to the nearest $100. These changes would apply to tax years beginning after December 31, 2025.
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2. Increase in exclusion from gross income of social security benefits (a) In general Section 86(c) of the Internal Revenue Code of 1986 is amended— (1) by striking $25,000 in paragraph (1)(A) and inserting $50,000 , (2) by striking $32,000 in paragraph (1)(B) and inserting $64,000 , (3) by striking $34,000 in paragraph (2)(A) and inserting $59,000 , and (4) by striking $44,000 in paragraph (2)(B) and inserting $76,000 . (b) Inflation adjustment Section 86(c) of such Code is amended by adding at the end the following new paragraph: (3) Inflation adjustment (A) In general In the case of any taxable year beginning after December 31, 2026, the dollar amounts in paragraphs (1)(A), (1)(B), (2)(A), and (2)(B) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to nearest multiple of $100. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.